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Reasons to Invest in Natural Gas

Reasons to Invest in Natural Gas

Renewable energies are growing in popularity amongst investors with many people looking to make money from this developing market. However, there are so many renewable energies available, such as solar power and wind power. So, why should investors choose natural gas over these other options? What makes natural gas such a good investment? This article will examine some reasons why investors should include a natural gas company in their portfolio.

First, natural gas is being considered as a viable way of providing energy in the future by major companies. Global market leaders such as BP are extracting natural gas. Major companies have a huge amount of resources and they wouldn’t be moving into the field of natural gas extraction if they didn’t believe that this resource has a valid future.

Another reason why you should invest in natural gas is that it is a highly versatile form of energy. It can be used to produce electricity. However, it can also be used for cooking and heating the house. This versatility ensures the continued growth in demand for natural gas.

As with all fuel sources, the supply of natural gas is an important factor to consider before investing in the industry. Here, natural gas shows reasons to expect a bright future. It has an abundant natural supply, with studies estimating around seven quadrillion cubic feet of natural gas worldwide. Additionally, this resource is cheaper to extract than other fuel sources, such as coal and oil. This allows extraction of the gas to make large profits and gas power plants to be run at lower costs than coal power plants while producing fewer emissions.

While gas usually travels via pipelines, it can be transported overseas as Liquified Natural Gas (LNG). While the demand exists for LNG, facilities need to be built to convert natural gas into LNG and then turn it back when it reaches its destination. Companies involved in building these facilities are expected to become very profitable as natural gas becomes more commonly used around the world.  

Finally, as the world focuses more on environmentally friendly products, natural gas will grow in popularity as an energy source. Consumers are increasingly demanding environmentally friendly solutions to their energy needs. With natural gas plants producing far fewer emissions than coal-fired power plants, this mode of electricity will continue to gain traction in the market.  

For these reasons, companies that are involved in locating natural gas fields make a great investment to add to your portfolio. By investing in companies in the natural gas space, you will be investing in an industry that will continue to experience growth for many years to come.

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