PXP Buys Into Haynesville Shale, Could Be a 'Great Deal'

The Haynesville Shale appears to be the next platform for stock growth. With so few options in this market for growth, without agricultural plays such as (POT) and (IPI), the energy market looks primed for growth through the end of the year. Also, if you think that OPEC will help us, you are sadly mistaken. Since they have had low prices for so long OPEC will keep them up for as long as the US market doesn't belly flop. This is an interesting time for our economy but luckily we are resilient. By next year we will start flooding the market with high fuel economy and hybrids cars with smaller, cheaper batteries that will run a vehicle alone up to 40 miles per gallon. I know I'll here about that statement but Dodge already has a plan for such a model. We will wait and see. Until then, exploration and production of natural gas looks good. With nothing new to push down the price and an inability to hike rates unless Europe does, we will still see high prices. Don't blame the speculators, as they wouldn't be speculating if there was a high inventory.

The Haynesville Shale appears to have a plethora of resources with respect to natural gas. Chesapeake Energy (CHK) made a great move getting in there and that is why their stock is up so much since I made the call on theupdown.com. Even more important was the news of an agreement with Plains Exploration & Production (PXP). This could be a great move for CHK, but PXP could end up making out like a bandit. For PXP this is an instant move into shale that could hold up to 23 to 44 trillion in unrisked, unproven reserve potential.