The resurgence of the American oil and gas industry has been nothing short of breathtaking.  The Peak Oil Theory had filled Americans with anxiety that the country would remain forever tied to importing oil from governments that are often hostile towards U.S. interests.  The development of hydraulic fracturing and horizontal drilling has dramatically reduced natural gas prices, ultimately setting the stage for exportation of liquid natural gas to take advantage of the higher prices in Europe and Asia.  Manufacturing and chemical companies are major beneficiaries from reduced energy costs as well.  Nimble and savvy companies’ such as EOG resources, Pioneer Drilling and Devon Energy are some of the companies that have been able to adeptly adapt to these unconventional plays, while the major oil companies’ have been slower to move.  At TTCM, we have successfully invested in Apache (APA), Devon (DVN), Chesapeake Energy (CHK) and Sandridge Energy (SD).  Currently we have also been establishing a position in Ultra Petroleum, which we believe would be a huge beneficiary of long-term increases in the price of natural gas.  The article below sums up these developments quite nicely.

 

 

 

http://online.wsj.com/news/articles/SB10001424052702303653004579213874195189470?mod=WSJ_hpsMIDDLENexttoWhatsNewsSecond