Dec 19, 2012

Posted by in Commodities | 0 Comments

The Time Is Right For Natural Gas Investments

natural gas investmentsTemporary Pause in the Boom of Natural Gas Investments

Now is a great time to be looking into natural gas investments.  The technological hurdles faced by any new extraction method have been largely ironed out. The market demand for the product is steadily growing both as a low cost fuel in its own right and as a low-emission alternative to existing fuel sources.

The good news from the standpoint of a new investor is that there has been a temporary pullback in natural gas investments due to the amazing success of previous rounds of funding. There is simply so much gas being produced in the United States today that the supply is actually outstripping demand. This of course leads to falling prices and a decrease in new natural gas exploration and development.

The Good News about Natural Gas Investments

This glut is only a passing phase, however. The low price of natural gas in the United States is heralding a return of natural gas-intensive industries such as chemical and pharmaceutical plants from their current overseas locations. New shipping terminals are being readied that will permit the export of cheaply-produced American gas to overseas customers such as those European nations currently held hostage to Russia’s virtual gas monopoly.

This temporary satiation in the domestic natural gas market is coupled with industrial trends that will reignite demand in the near future. Investors have a narrow window of opportunity to shop for well-managed companies which are suffering from the general doldrums of the entire market segment. They can be had very cheaply at the moment, and demand for their products will soon return them to high levels of profitability.

While nothing in life is a complete sure thing, the likelihood of American natural gas investments moving back up into the black is about as close as one can come without owning a casino.

Comments are closed.