The following video is part of our "Motley Fool Conversations" series, in which energy editor and analyst Joel South and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
In today's edition, Joel and Austin discuss the can't-seem-to-go-any-lower natural gas prices. With prices this low, Joel thinks Cheniere Energy could be a huge winner. The company is in the process of getting licenses to export natural gas. The hard-to-get licenses would put it in a prime position to sell natural gas that's drilled domestically -- where it sells for around $2 -- internationally, where it sells for upwards of $10.
Another potential winner could be US Steel, a company that is switching from coal to natural gas as a key input in the metal manufacturing process. The switch is expected to save the company $7-$8 per ton. Of course, it isn't all rainbows and butterflies out there -- Chesapeake Energy is one company that's been hurt by the low prices. As the nation's largest natural gas producer, it has had a hard time selling the commodity at a high enough price to justify the drilling. This has caused the company to convert many of its natural gas drilling rigs to drill for oil instead.
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Austin Smith and Joel South have no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.