With natural gas prices bottoming out in 2012 due to overproduction, projections for 2013 show a 3.5% decline in drilling across the board in the U.S. Despite the less than stellar outlook, there are a few bright spots that investors should pay attention to. The Bakken and Utica regions are well-positioned to outperform because of the high percentage of liquid resources. This means that companies like Kodiak Oil & Gas and Whiting Petroleum, who have strong positions in these regions, could do well in 2013. In this video, Motley Fool contributor Tyler Crowe discusses why expectations in liquids-heavy plays will remain high, and what the natural gas industry needs to do to catch up.
Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him on Fool.com under TMFDirtyBird, Google +, or Twitter @TylerCroweFool.
Joel South has no position in any stocks mentioned. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. 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.