If you are looking for a hot industry that is going to revolutionize how Americans consume energy, you need to look at natural gas. The great thing about natural gas is that it is so flexible, it can be used for the production of electricity, for cooking, and for many more other uses. Its flexibility ensures a wide industry footprint. It is not like crude oil that has a relatively narrow range of uses.
As American energy consumption patterns shift from crude oil to natural gas, natural gas players stamp to benefit. The US has a rich storage of natural gas and there are very interesting players in the market that you should pay attention to. The great thing about these stocks is that they are currently under 10 dollars. They are a bargain. The reason why they are so cheap is because they either have a lot of that or they are feeling the brunt of the current collapse in energy prices. When the global price of crude crashed, the price of natural gas crashed as well. It does not help things that there is a current glut and an oversupply of natural gas in the United States.
With that said, expect well-positioned companies that drill in certain areas to benefit well from the recovery of the energy market. The key here is to look for a recovery that does not mean going back to pre-crash levels. I do not believe that oil will ever hit 100 Dollars per barrel again. Instead, look for consolidation and normalcy in the industry based on affordable energy prices. Rex Energy (NASDAQ:REXX) is such a well positioned player, it is under 10 Dollars and it gets its gas from the Marcellus and Utica shale region of the Appalachian basin. If the energy markets normalize, this is one stock that stands to benefit. Currently, it is at a great bargain at less than 10 Dollars.