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Natural gas has not experienced much action in terms of price, when compared to almost all other commodities. The amount of natural gas is known to be limited but the development of horizontal drilling technology has increased the potential for increased supply. However, some experts claim that supply is much lower than what we commonly hear.

According to one petroleum industry analyst who has an excellent track record of making big calls, this is exactly what is happening. Henry Groppe is 80-something years old but still has his head in the game. He says that shale wells are rapidly depleting and there is a major gas shortage. Mr. Groppe claims that the American people will soon realize this situation.

Mr. Groppe has over 50 years of experience, so perhaps we should  learn more about what he thinks. He believes that gas inventories will get tighter. According to him, new supplies are being overstated and prices will soon increase to more than $8. His reasoning rests on the fact that shale gas, unlocked as a source by horizontal drilling, is not all it’s made out to be.

The analyst states that wells that are horizontally drilled face a large amount  of rapid depletion once they are tapped. Therefore, the supply that the country is betting on is very short-lived. His view, though not popular and certainly in opposition to the prices of many natural gas stocks, has gotten the attention of some in the industry.

If natural gas supplies truly are overstated, now may be a great time to make an investment in this sector. Getting in now will result in a financial windfall if gas prices do soar as Mr. Groppe predicts. Though this news is unfortunate for those within the renewable energy sector, it is great news for natural gas companies and their investors.