NEW YORK (TheStreet) -- I sat down with Jim Cramer today to discuss the International Energy Agency (IEA) report and how it might translate into some actionable ideas. One continuing idea that got a significant boost from the report is in liquid natural gas (LNG).
Tight oil supplies in the U.S. are being freed by hydraulic fracturing, and the IEA expects those supplies to increase by almost 4 million barrels a day in the next five years, all after those supplies have already increased close to 3 million barrels a day in the last four years. All of that new oil supply will also necessarily generate a further supply of natural gas, already in very plentiful supply and very cheaply priced.
One way for those growing natural gas supplies to find a new market is in the export of LNG. Slow restart of nuclear plants in Japan and a lack of unconventional natural gas exploration in Europe assure a solid arbitrage for the export of LNG for the next several years, perhaps decades.
Some of the companies poised to benefit from this arbitrage are Cheniere , Golar and Dominion .
I talk more about the LNG opportunity with Jim in the video above.
At the time of publication, Dicker was long CVRR, although positions may change at any time.