Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Natural gas Company – Investment option

By Maxleon Subscribe to RSS | July 20th 2012 | Views:

Energy requirements are hitting the roof and the look out for alternative fuel resources are also rising. Oil and Natural gas companies are constantly on the look out for secondary fuel resources and newer technologies are being put in place to help achieve this goal. Earlier it was coal and oil, now the energy requirements have turned to natural gas. The demand for natural gas is increasing and so are the investment options in a natural gas company. The demand for natural gas is rising and according to the U S Energy Information Administration (EIA), natural gas consumption may increase by additional 20% over the next ten years. This is not all, natural gas for energy consumption also is anticipated to rise over 60%. Since natural gas is a low particulate fuel the demand is high. Despite the high demand the production does not match up to the requirement.

With newer technologies in place digging new wells needs to be quickened. America’s natural gas potential is huge but these reserves remain untapped due to political reasons. The reserves are either hard to reach or strictly off limits. Alaska is rich in natural gas yet building a pipeline would mean a fortune. Any natural gas company with focus offers investment opportunities through direct participation programs or working interest programs that enable investors to take part in the cash flow and also enjoy tax benefits that are exclusive for oil and gas investments. The tax benefits can range from upfront deductions on intangible drilling costs (IDC) to tax credit. When it comes to oil and natural gas investment opportunities there are many. An investment in oil and gas drilling programs are risky but can provide high returns.

More domestic oil and gas production helps a country to be self sufficient in oil and gas. This has many advantages and the government offers tax advantages that can benefit oil and natural gas companies and their investors a great deal. Reports reveal that oil and natural gas company can suffer huge loss due to a rude winter. According to Bloomberg reports the natural gas had chosen good rallies in the past years and a harsh winter could undo all his. It is reported that even 10 days of harsh winter weather can eat up around 500 billion cubic feet of gas. It is also predicted that a bitter cold weather or a hurricane could be detrimental for the gas company.

Natural gas is the most versatile fossil fuel and has a range of applications both domestically and commercially. EIA reveals that around 24% of the total energy consumed in the United States is natural gas. This is only the case in the US, the same holds good globally. The demand for natural gas is rising by the hour. Any natural gas company is likely to benefit from the demand like electricity, petrochemical feeder stock, Liquefied natural gas (LNG) and transportation natural gas. This means the price of natural gas is likely to rise in the near future making it a good investment option.

Maxleon - About Author:
Max Leon is an expert in the field on oil exploration and has done thorough study about this sector. He has been closely associated with Texas based oil and natural gas company and has shared his experiences in several online articles.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Investing Articles Subscribe to RSS

Know about companies which apply advanced techniques for natural gas exploration
Published by Marshjoseph on April 26th 2012 | Investing
Though considered comparatively newcomer in this field, few Texas based companies make sure they use...
How to choose the right debt management company
Published by James Falla on November 30th 2011 | Finance
There are many different debt management companies. We suggest the things you should consider when ...
Information related to company pension scheme
Published by Larry Ellison on January 5th 2012 | Finance
Company pension scheme is extremely beneficial for employees. It is of 2 types. Company pensions typ...
Why hire a credit card debt management company?
Published by Yossi A on January 12th 2012 | Finance
As a matter of fact, it not only clears your already existing debt but also offer valuable technique...
Know reasons behind continuous demand for oil and natural gas investments
Published by Mano Matthew on May 25th 2012 | Investing
Oil is one commodity which has contributed significantly to the tidal wave of global growth. We just...
Know about advanced techniques which benefited the natural gas company
Published by Maxleon on June 21st 2012 | Investing
A number of independent companies have come up which have taken the help of latest technologies to e...
Overcome finance related business issues with a reliable insolvency company
Published by Ashish Pandey on January 16th 2012 | Finance
Any business might go through different kinds of hurdles and when things get out of control it is go...
What are the benefits of listing company in the stock exchange?
Published by Gxgexchange on June 22nd 2012 | Investing
With this article we let you know why it is so important and what are the requirements for any compa...
Know how to eliminate risk factors related to natural gas exploration
Published by Marshjoseph on June 29th 2012 | Investing
The process related to extracting natural gas out of the ground and then sending it to its final des...
Need to verify the profile of natural gas company before taking investment decision
Published by Maxleon on July 25th 2012 | Investing
One specific USA based independent oil and natural gas company deserves mention in this regard becau...
Final call from your digital options trading company
Published by Alvin Cook on May 15th 2012 | Investing
It has been the final decision made by investors to look into the binary options trading...
Know how to stay updated with natural gas news on a regular basis
Published by Kevinpieter on August 22nd 2012 | Investing
Before taking investment decision, it is very important to know about the specific company profile. ...