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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.

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