Correct, commodities do not go to zero, however the companies that produce them can.
In the long term, natural gas will make lots of companies and people tons of money. The question today is whether companies like CHK can keep from going bankrupt while this short term over production / under consumption problem is resolved.
Will CHK survive, probably. In the process of sorting out the winners and losers, nearly every player will see their stock value decline.
Why own CHK today. Wait until production problems come closer to resolution. The price will be much cheaper and you will greater assurance they will not go under.
Patience will be rewarded only if you patiently wait to buy CHK.
Right, but in 2009, natural gas is worth very little. We are already seeing many small producers go bankrupt. Once that incremental supply starts to taper off and the impact of rigs being idled kicks in, and coupled with a boost in supply, the market will eventually recover, but likely in 2010.