Once again, the widespread adoption of fracking has completely changed the dynamic of the energy market in the United States. And this time we’re not talking about the sheer volume of oil being produced in fields like the Eagle Ford or Bakken shale.
No, fracking has had its way with plenty of other energy commodities. And this time, we’re talking about liquefied petroleum gas (LPG) and propane.
For most Americans propane is often overlooked except when we fire-up our grills — although 14 million households do use it as a cooking/heating medium. Globally, it’s a pretty big commodity, finding its way as chemical feedstock, transportation fuel as well as into off-the-grid refrigeration. And as one of the few things that energy firms are a lowed to export, the U.S. is quickly becoming a major supplier of LPG and propane to the world.
According to energy think-tank FACTS Global Energy, exports of LPG could roughly triple by 2020, reaching 635,000 to 795,000 barrels per day. That means energy stocks that have a heavy presence in propane are some of the best stocks to buy right now.
All in all, that’ll boost prices for propane and LPG here at home. Luckily for those who use propane to fuel their homes — or for investors just looking to cash in — there are plenty of ways to play the surge in LPG/propane exports. Here are four of the best energy stocks to buy.