NEW YORK, NY -- (Marketwire) -- 06/26/12 -- PremierEquityReports.com, the U.S. leader in equity reports, offers quality reports to investors looking for the most undervalued companies in the market. Premier Equity Reports provides its subscribers with timely information and exclusive analysis on U.S. companies with substantial upside potential. Premier Equity Reports is the #1 free financial newsletter in the industry. And today issues a report on Universal Bioenergy (OTCQB: UBRG) (OTCBB: UBRG) www.universalbioenergy.com
Click here - www.PremierEquityReports.com
SECTOR OVERVIEW:
Over the last five years, global economic and political headlines have pushed an overwhelming number of investors into hot commodity trades. Gold and oil have been the center of attention as current economic woes have created a slew of volatile moves that indicate momentum trading rather than true fundamental valuation. With gold and oil stealing the spotlight, the world's greatest supply of energy and possibly its most undervalued commodity has gone unnoticed -- natural gas.
The United States currently has enough natural gas to supply our nation with energy for 100 years. The natural gas industry supports 3 million jobs and adds $467 billion to the U.S. economy. The Energy Information Administration (EIA) expects U.S. demand for natural gas to increase about 24% by 2035. In a "Natural Gas Year-In Review Report," the EIA stated, "Over the past several years, natural gas use for electric power has increased, with gas making up an increasing percentage share of total generation relative to coal. In 2009, natural gas made up almost 24% of net power generation. By comparison, in 1996, natural gas made up only 14% of power generation." North America is the global hub for natural gas with about 99% of the total gas consumed by the United States coming from North America. Just as the Middle East has been the controlling area for oil, the United States could someday become the epicenter for natural gas.
Natural gas is one of the cleanest burning fossil fuels, and its use is expected to continue to grow. Natural gas is used in the production of steel, glass, paper, clothing, brick, electricity, and as an essential raw material for many common products. Some products that use natural gas as a raw material are: paints, fertilizer, plastics, antifreeze, dyes, photographic film, medicines, and explosives. Slightly more than half of the homes in the United States use natural gas as their main heating fuel. Natural gas is also used in homes to fuel stoves, water heaters, clothes dryers, and other household appliances.
According to the EIA, in 2011, the Henry Hub natural gas spot price averaged $4.25 per million British thermal units (MMBtu), down $0.13 from 2010. However, the EIA expects the natural gas market to tighten in 2012, with the Henry Hub spot price expected to rise to $4.58 per MMBtu. This in addition to the United States' exports of natural gas to Canada rising approximately 25% in 2011 compared to 2010 and Mexico's rising nearly 100% for the same period.
While momentum traders focus on gold and oil, value investors are accumulating natural gas investments at a steep discount. Many chart technicians are even starting to discuss how the UNG (The United States Natural Gas ETF) has bottomed out. The UNG put a double bottom in at $15.00 on massive volume. An upside breakout from this level may not encounter heavy resistance until $40.00 for a 167% gain. If this indeed is the bottom for natural gas prices, it could equate to higher margins and increased profits for Universal Bioenergy.
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PremierEquityReports.com: Universal Bioenergy to Cash in Big on Natural Gas, a Truly Undervalued Commodity
Jun 26 2012 12:00AM
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