FYI - NG
How Could The Turn Towards Green Energy Affect the Natural Gas Market?
Source:www.FuturesPress.com
It has been all over the news for years now: our planet is reeling from the effects of pollution. There have been reports of unusually high temperatures hastening the melting of the polar caps and smog so thick you could cut it with a knife. With these problems facing the population, Natural Gas may be the best answer available – and if so,
the effect on the Natural Gas market could be phenomenal.
One of the main reasons we could see a big bump in the use – and thus, demand and price - of Natural Gas is its use in the automotive field. Natural Gas has been used to power vehicles as early as the 1930’s; moreover, since Toyota’s first attempt at a CNG (Compressed Natural Gas) vehicle in 2000, Honda has worked on a version of it’s
acclaimed Civic that runs solely on Natural Gas. Seeing how Honda is one of the foremost automakers in the world it should come as no surprise that this fundamental information should be heeded when thinking about trading Natural Gas in 2009 and beyond; moreover, if one major automaker produces a successful and popular CNG
vehicle rest-assured that the rest may follow suit.
Also, with increased use by automobile manufacturers, this will bump up industrial usage beyond the 34% estimated by the EIA’s Annual Energy Outlook of 2007. 34% is already one-third of total natural gas usage; any extra demand by the industrial sector could create higher prices in all other sectors as they will still require their share of
Natural Gas – and likely more so once Natural Gas replaces crude and coal wherever possible. This is not an unlikely scenario especially considering that Natural Gas puts out 1/12th of the particulates that crude oil does during production and use, and 1/392nd of the particulates that coal does. Although experts claim that coal is burning much more efficiently now, the level of particulates is rather alarming. If Natural Gas were to become the new staple of American energy, it could make up almost 45% of America’s energy source. In comparison: as of 2005, petroleum was the source of 40% of America’s energy consumption; if Natural Gas were to even come close to matching that we could see a very strong bull market.
Lastly, it is feasible to believe that Natural Gas will make quite a bull run in 2009 when suppliers have yet to practice gauging the amount of Natural Gas needed for.
US - Energy InformationAdministration
https://www.eia.doe.gov/
& Natural Gas Navigator
https://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp
NOTE : Natural Gas Storage (not shortage)
Natural gas in storage fell to 1,895 billion cubic feet (Bcf) as of Friday, February 20, with net withdrawals totaling 101 Bcf. Currently, the total volumes in storage stand 11.7 percent above the 5-year (2004-2008) average and 14 percent above last year’s level.
Futures: https://tonto.eia.doe.gov/dnav/ng/ng_pri_fut_s1_d.htm
Profile for Natural Gas Furtues Contracts
Ticker Symbol: NG
Exchange: NYMEX
Trading Hours: 9:00 AM until 2:30 PM EST.
Contract Size: 10,000 million British thermal units (mmBtu).
Contract Months: all months(Jan. - Dec.)
Price Quote: $/MMBtu. Ex $6.50 per MMBtu
Tick Size: $0.001 (0.1¢) per mmBtu ($10.00 per contract).
Last Trading Day: Three business days prior to the first calendar day of the delivery month.
From: OprionEtics https://www.optionetics.com/market/articles/20927
Read the entire artilce but at the very least the section "Outlook and Investment Strategy"
Go to the National Petroleum Council website and you will find lots of info following the "The 118th meeting of the National Petroleum Council - held in Washington, D.C., on Wednesday, September 17, 2008.
https://www.npc.org/
Hope this helps you all understand how Natural Gas plays in the energy equation. The are many more articles available on the web - with the US looking to reduce its dependence on Oil and Gas rich Alaska I do not think NG will go the same way as Oil.