Natural Gas is a domestic energy that should be more accessible to the driving population as an alternative to the conventional fueling methods that are currently dominant. Building more natural gas stations would spur the average consumer to consider purchasing a natural gas vehicle instead of a vehicle that is fueled by conventional methods. The United States is able to produce the majority of its natural gas here right at home, and this helps thwart our dependence on other countries that may not have aligned interests with us. Currently, several public transportation vehicles are running on natural gas because it’s a cleaner, less expensive, alternative to gasoline or diesel fuels. Imagine the benefits of more natural gas vehicles if this platform was expanded to the individual consumer level! Advantages of Natural Gas: *About 94% of U.S. natural gas used is domestically produced1 *Roughly 20% to 45% less smog-producing pollutants2 *About 5% to 9% less greenhouse gas emissions2 *Less expensive than gasoline Disadvantages of Natural Gas: *Limited vehicle availability *Less readily available than gasoline and diesel *Fewer miles on a tank of fuel source: fueleconomy.gov In order to make this alternative become more of a reality for the individual consumer – much investment is needed. There are several ways to profit from this – and the most common way would be to invest in the companies that provide natural gas already. Investing in natural gas stocks and/or natural gas ETFs is probably the easiest way to get started – especially for small investors looking to take advantage of this potential expansion of the natural gas market. Natural Gas Stocks- these include some of the biggest players such as: Chesapeak Energy (CHK) Exxon Mobile (XOM) Range Resources (RRC) Ultra Petroleum (UPL) Southwestern Energy (SWN) Investing in companies like these allow for a “pure play” investment – where you’re investing in a company’s stock whose main business involves producing and selling a particular commodity that you’d like to invest in (natural gas). Natural Gas ETFs- some of the most well-known ETFs (exchange-traded funds) include: United States Natural Gas Fund (UNG) ProShares Ultra DJ UBS Natural Gas ETF (BOIL) VelocityShares 3x Long Natural Gas ETN (UGAZ) ProShares UltraShort DJ UBS Natural Gas ETF (KOLD) VelocityShares 3x Inverse Natural Gas ETN (DGAZ) We do not own or are anyway involved with the shares listed above – nor is this an attempt to recommend these as good or bad investments. We are simply pointing out a few of the several investments in natural gas stocks and natural gas ETFs. Follow this link to read all about natural gas stocks and ETFs!
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