News Analysis date published New: 
Wednesday, March 27, 2013 - 08:30
New Date created: 
Friday, March 29, 2013 - 11:46
New Date last updated: 
Wednesday, March 27, 2013 - 08:30

How to Profit from the Cheapest Natural Gas in Recent History

Wednesday, March 27, 2013 8:30 AM

The tidal wave of change is coming... And investors who get in now stand to make a killing.

I'm talking about the shale oil and gas boom... and that's despite the lowest natural gas prices in 35 years.

Now that the country has a better understanding of how much natural gas we are sitting on, companies are investing in some pretty revolutionary ideas.

These ideas will change the way just about every industry does businesses -- from agriculture to automobile production to power generation.

You already know the story of hydraulic fracturing, or fracking. To date, it has been one of the most disruptive energy technologies developed since the discovery of oil -- turning previously inaccessible shale formations into a 100-year energy supply.

As a result, natural gas prices have fallen to historic lows...

The drop in natural gas prices is the equivalent of a drop in the price of a gallon of gas from $3.50 to 62 cents.

Now, the United States has become one of the most profitable places on the planet to make a number of goods that require natural gas -- including chemicals and fertilizer, electricity and energy-intensive products such as aluminum, steel and glass.

I cover many of these major industry shifts (and how to profit from them) regularly in my newsletter, Scarcity & Real Wealth.

But there's one aspect of this natural gas sea change that I want to focus on today... one that you may be surprised to hear is the result of a rediscovered 68-year-old technology.

I'm talking about gas-to-liquids (GTL) technology, and how it could be even more profitable than fracking itself.

I'll spare you a deep technical discussion. In short, converting natural gas into a liquid (i.e. gasoline, diesel, etc.) is done through a three-step process that extracts unneeded molecules and distills the remainder into a clean and pure liquid that has the same exact chemistry as gasoline or diesel fuel.

I know how preposterous it may sound that GTL technology could be more profitable than fracking. But not when you fully understand how falling natural gas prices make it possible for GTL technology to profitably produce a barrel of diesel fuel for 50% less than it costs today... then you can begin to see the profit opportunities staring you in the face.

And as the fracking boom spreads around the world, I expect to see the company that developed this technology to become a world-wide leader in GTL technologies.

This is just the beginning.

If you can believe it, this company has been developing GTL technology for more than 68 years, even though it was uneconomical to do so -- just like Toyota, which developed the Prius in 1997 when gas was selling for just $1.20.

Because this company developed GTL technology early on, when it was unprofitable to do so, few people know about or own its stock.

All of that is about to change dramatically.

Today's low natural gas prices finally make it possible for its GTL technology to produce diesel fuel for $1.57 a gallon -- half the $2.95 per gallon it costs to make premium diesel from oil. Additionally, more and more big energy companies are lining up to purchase this technology.

For these reasons, we believe that investors who get in now could grab triple-digit gains in the next three to five years as this disruptive energy technology spreads around the world.

Risks to Consider: With an idea as untested as GTL, the risks are significant. I don't advise putting all of your savings into this idea, but the potential is great. You're going to be hearing more and more about this technology as the effects of cheap natural gas permeate throughout the global economy -- and early investors will be the ones who profit the most.

Action to Take --> This idea is so big, I couldn't fit it all in this issue of StreetAuthority. Instead, I put together a special presentation that explains everything you need to know about GTL technology, along with several other developing trends brought on by the fracking revolution. Click here to access it.

Nathan Slaughter does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.