Is natural gas the new safe haven? Reveal the top 3 stocks poised to surge as oil volatility spikes.
7/3/2025 11:00am
**Natural Gas as a Safe Haven and Top Stocks to Watch**
1. **Natural Gas as a Safe Haven:**
- Natural gas has been considered a safer climate alternative to coal, emitting 50% less carbon dioxide (CO2) upon combustion. However, recent studies reveal that methane leakage rates as low as 0.2% can render natural gas's climate impact comparable to coal. This highlights the importance of stringent emission controls and strategic interventions to reduce methane emissions across the natural gas supply chain.
- Despite its environmental implications, natural gas has gained appeal as a relative safe haven amid market volatility. This is evident during the stock market slump, where investors sought stable investments like natural gas futures, which held strong at winter price levels.
2. **Top Stocks Poised to Surge:**
- **Tourmaline Oil (TSE:TOU)**: As Canada’s leading natural gas producer, Tourmaline benefits from rising global demand for LNG exports and has a strong cash flow, supporting dividend payments and shareholder returns.
- **Ovintiv (TSE:OVV)**: With significant free cash flow, Ovintiv can invest in growth opportunities and return value to shareholders, positioning it well in the competitive natural gas market.
- **Arc Resources (TSE:ARX)**: This Montney region-based company enhances profitability through balanced natural gas and high-value NGL production and is increasing exposure to global LNG markets.
In conclusion, while natural gas is not without its environmental risks, it has emerged as a relative safe haven in fluctuating markets. The top Canadian natural gas stocks, Tourmaline, Ovintiv, and Arc Resources, are strategically positioned to capitalize on global demand, particularly in LNG exports, and are well-equipped to navigate the challenges of infrastructure and government policies, suggesting potential for significant stock surges.