Natural Gas Investments
Natural gas investments have become popular among investors looking for a middle ground between fossil fuel and green technology. Coal power, gasoline and diesel have been maligned by an increasingly eco-conscious public interested in environmentally friendly investments. While solar panels and wind turbines are seen as power sources for the future, methane and hydrogen are ready to power homes and offices today. Investors should learn more about the benefits of natural gas before sinking their money in the energy sector.
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Choosing Natural Gas Over Solar and Wind
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Investors looking at alternative energy may be tempted by the promise of wind turbines from Vestas or lithium-ion batteries from A123 Systems. Natural gas investments are more reliable over the next generation because the technology has developed quickly due to state and federal support. An abundance of methane gas in the United States means a reliable source of energy for cars, homes and machinery running on natural gas. The next generation of wind turbines and solar panels are coming into the market in the next decade as second-generation natural gas technology has already been tested by public and private consumers.
Applications of Natural Gas
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Natural gas stocks will rise over time because hydrogen, methane and compressed natural gas (CNG) can be used everywhere in daily life. Homes, warehouses and office buildings around the United States are heated using natural gas. Honda has created the Civic GVX to run on CNG tanks rather than gasoline, the only automobile on the market that runs on natural gas. Industrial machine companies are equipping forklifts and delivery trucks with natural gas drive trains to save thousands of dollars on gasoline.
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Investment Options in Natural Gas
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Investors should look beyond the major players in the energy industry including BP, Exxon Mobil and Shell when searching for fast risers in natural gas. Swift Energy Company is an oil and natural gas company that drills for methane on the Gulf Coast. Swift Energy's portfolio is shifting away from offshore drilling to natural gas exploration in Texas, Louisiana and the Gulf waters as national energy priorities evolve. Tulsa-based Helmerich and Payne Inc. is another energy company that is exploring and cultivating natural gas pockets in the Great Plains. Regional companies like Swift Energy and Helmerich and Payne Inc. could grow into natural gas giants over the next generation.
Prominent Advocates for Natural Gas
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Natural gas mogul T. Boone Pickens launched a campaign during the 2008 presidential election to promote natural gas as part of America's alternative energy future. Pickens, the chairman of BP Capital Management, is an advocate for a mixture of natural gas, wind and nuclear power generation to pull the United States away from fossil fuels. Former President George W. Bush and Congress promoted natural gas in the last eight years through tax incentives and grants to programs that would advance natural gas technology.
Considerations
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Newcomers to natural gas should look at methane cultivation at the ground level before investing their hard-earned money. Investors in Southern, Midwestern and Western states likely live within a few hours of natural gas companies that are trying to turn methane into usable energy. Every investor should schedule a tour with a local or regional gas company for a tour, which many companies will oblige as part of their public relations campaigns. If a guided tour of a natural gas facility is unavailable, an investor should look at the growth of a natural gas company over the past year to see whether it is rising or dropping in the market.
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Resources
- Photo Credit Photo by Coke Brown Jr. (Flickr)
