Chesapeake Energy Corporation (CHK), Cheniere Energy, Inc. (LNG), Range Resources Corp. (RRC): The US Natural Gas Supply Just Got 26% Larger

The problem here is that chemical companies such as The Dow Chemical Company (NYSE:DOW) have vowed to vigorously fight an increase in natural gas exports. With more than $4 billion in projects coming online over the next few years that use natural gas as a feedstock, you can understand why the company wants the price kept low. With the study showing that we have more natural gas than previously believed, maybe we can have our gas and export it, too.

A final area to consider is the massive potential for natural gas as a transportation fuel. As more fuel stations are being built, natural gas has real potential to finally change the fuel industry. Leading the charge is Clean Energy Fuels Corp (NASDAQ:CLNE) , which is building out America’s Natural Gas Highway. The fact that we have more clean-burning natural gas than originally thought means we should have plenty of gas to go around.

Everything still hinges on the price of natural gas. If the price runs too hot, it will crimp demand. Likewise, a depressed price will cause drillers to pull back, as they’ve done the past year and a half. Knowing that our supplies are now 26% higher, the price of natural gas should only moderately increase over the longer term, while drillers should expand production only when prices move higher. If we play our cards right, our nation could have a sustainable competitive advantage on its hands.

The article The U.S. Natural Gas Supply Just Got 26% Larger originally appeared on Fool.com.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels and Range Resources and has options on Chesapeake Energy.

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