Forget NatGas—Invest in Off-Shore Drillers: Trader
The entire energy industry thinks that pressure pumping—also known as fracking—is going to be the best play and "our future," said Daniel Dicker, independent oil trader and contributor to TheStreet.com. But there are a couple of reasons why investments in that space may be “dead in the water” for at least the next two to three quarters.
“If you look at the natural gas curve of prices, we’ve had a decrease in prices,” Dicker told CNBC.
“Even worse than that, the curve of prices has gotten flatter since May and what that indicates is that at least for the next 6 to 7 months, the oversupply is going to rule.”
Dicker said investors should look into the off-shore drillers instead.
“They’ve been beaten down by the Gulf of Mexico [spill], but there seems to be a lot of pressure on the White House...to remove the blanket moratorium on offshore drilling,” he explained. “There have been a lot of protests.”
Dicker believes the drilling moratorium will lift in November, "if not sooner than that."
Diamond Offshore Drilling
Scorecard—What He Said:
- Dicker's Previous Appearance on CNBC (Jul. 28, 2010)
More on Energy:
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Dicker owns shares of BHI.