NEW YORK (TheStreet) -- I sat down with Jim Cramer today to discuss the International Energy Agency (IEA) report and how it might translate into some actionable ideas. One continuing idea that got a significant boost from the report is in liquid natural gas (LNG).
Tight oil supplies in the U.S. are being freed by hydraulic fracturing, and the IEA expects those supplies to increase by almost 4 million barrels a day in the next five years, all after those supplies have already increased close to 3 million barrels a day in the last four years. All of that new oil supply will also necessarily generate a further supply of natural gas, already in very plentiful supply and very cheaply priced.
One way for those growing natural gas supplies to find a new market is in the export of LNG. Slow restart of nuclear plants in Japan and a lack of unconventional natural gas exploration in Europe assure a solid arbitrage for the export of LNG for the next several years, perhaps decades.
At the time of publication, Dicker was long CVRR, although positions may change at any time.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV