Expect gas prices to double by summer

Gas has been damned as an 'absolute dog' of late - its price has steadily fallen whilst most other commodities around it have seen a rapid rise. But that all looks set to change.

While most commodities have risen rapidly of late, "natural gas has been an absolute dog", says Joshua Brown on Thereformedbroker.com. The price has slid by a fifth to around $4 per million British thermal units (MBTU) in a year. That's because advances in drilling techniques mean that gas can now be recovered relatively easily from shale formations (layered sedimentary rock). So supplies in the US are now virtually unlimited or so the story goes.

Yet the conventional wisdom is wrong, according to veteran energy analyst Henry Groppe of Groppe, Long & Littell.

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