How to invest in natural gas?

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12th Nov 2009 by Gary

You can invest in natural gas in a number of ways. Probably the best way is direct as a commodity, as you bypass all the research concerning a company and its management, and can focus solely on supply and demand as to whether prices will go up or down. Much of that is determined by the weather and how cold it will be during the winter.

Other ways are through natural gas suppliers, or those who search for new deposits of the fuel. Many large companies have natural gas as a part of their overall portfolio of products or services, and so you would have to find out what percentage the natural gas has on their overall profits to determine if that's the way you want to invest in the commodity.
According to the U.S. Energy Information Administration, natural gas consumption to grow by over 20% over the next thirty to fourty years, making it a great long-term bet. The other side of the natural gas investment equation is while demand will continue to grow, production has been stagnant for about a decade in America, making an eventual rise in prices a guaranteed event.

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11th Nov 2009 In Commodities 1 Answers | 713 Views

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