NRGO - What's Happening In The Natural Gas Market Is A Great Precursor For The Oil Market

• We believe what's happening in the natural gas market today (both in the US and on the global stage) is a great precursor for the oil market.
• Natural gas market is a pure commodity market with no cartel to control the supply and demand. So the boom/bust cycle we've seen in US shale gas is a leading indicator.
• While there are very important differences between the two commodities, shale gas was the first to go into a sustained bear market, and the first to come out of it.
• With US gas production now constrained going forward and higher LNG exports on the horizon, US gas market appears to be entering a multi-year bull market.
• Similarly in the oil market, years of low oil prices have resulted in billions of upstream capex to be cut resulting in lower future oil supplies. And if demand continues to increase, there won't be enough supply going forward.

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