MORGAN STANLEY: Here Are The 16 Best Stocks For Playing The American Shale Boom

Thanks to technological developments in hydraulic fracturing, drillers have been able to extract natural gas from America's shale basins.

This has kept the energy production industry busy while domestic gas prices have stayed very low.

"Relentless supply growth and tepid demand led us to reduce our 2015 forecasts," Morgan Stanley analysts wrote. "Thanks to significant growth in US natural gas production, natural gas inventories remain on pace to reach just over 3.5 Tcf by the end of October. Given continued very strong gas production, and delivery, growth for the balance of 2014 and in 2015 is expected to become the major headwind for prices, particularly under normal weather."

With volatility returning to the stock markets, the best idea for investors may be to play long term themes like the ongoing American Shale Gas Revolution.

"The advantages of low US natural gas prices are evident in multiple industries, including refining, chemicals, fertilizers, gas- fired power plants, gas export and gas transportation," write the analysts.

Morgan Stanley picked 16 stocks they believe are best positioned for this big economic story.