Thursday, March 31, 2011

Look at (PXD) (NFX) (SWN) (END) in Shale Natural Gas

Talking the potential of natural gas in shale, Rehan Rashid, energy and natural resources analyst for FBR Capital Markets, said some of the companies he likes include Endeavour International Corporation (NYSE:END), Pioneer Natural Resources (NYSE:PXD), Newfield Exploration (NYSE:NFX) and Southwestern Energy (NYSE:SWN).

There is no doubt whatsoever that natural gas will become a huge source of energy in the United States, as it's only a question of when, not if, it becomes a major player.

Holding it back now is the extreme abundance of the resource, as new sources around the U.S. have been discovered recently, pushing down the price of the energy source, making it uneconomical at this time to produce in large quantities.

There are of course a number of other companies in the sector, but investors need to look closely and perform due diligence, as this could be one of the buys of the decade, and possibly century, as we may never see prices this low again for decades, once natural gas prices take off.

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