Natural gas is fast becoming one of the largest sources of power generation in the United States, for residential and commercial heating and cooling systems, in particular. Presented as an effective alternative to coal and oil because it is significantly less toxic for the environment, natural gas is typically used to power gas turbines or steam turbines.
As natural gas continues to emerge as a viable resource, opportunities to invest will become more and more prevalent. Natural gas production in the United States is considered to be one of the most stable and intelligent investment opportunities on the market.
If you are interested in investing in the future of natural gas, there are a wide range of opportunities available to you in the marketplace.
Exchange-traded products are an investment avenue for people seeking initial exposure to natural gas investment options. The United States Gas Fund (UNG) is a popular option for this particular investment, with a focus on front month futures contracts.
Teucrium Natural Gas Fund (NAGS) and the United States 12 Month Natural Gas are also options. Each one utilizes futures contracts to gain exposure to natural gas.
Under the symbol NG, natural gas futures contracts are traded on the New York Mercantile Exchange. The current market for these types of contracts is very liquid, with a bevy of activity throughout the week, generally. The Department of Energy releases their natural gas storage report on the Thursday of each week, and this often results in the heaviest trading of the week.
Stocks are for those who would rather avoid futures contracts, and seek more indirect expose to natural gas through investment opportunities. It is a matter of finding publicly traded companies that have operations focused on natural gas.
Investing in natural gas is a solid opportunity for future growth. Taking the time to explore it is well worth it, and could be hugely beneficial in the future.