Natural Gas

1echidna

Natural gas is probably a very plentiful commodity. It is cleaner in terms of CO2 production than other forms of hydrocarbon. Never the less in order to protect the environment it will be necessary to tax it at the point of sale and restrict its use by carbon trading. (possibly in 10 years)

amictus

Radiantsoul wrote: »

The best bet if you want to speculate on gas prices is some sort of contract for differences based on spot or forward prices at Henry Hub(the main hub for US pricing).

It is a complex market in my opinion.

The supply is vast and so that will drive down prices in the short term. In the longer term LNG will link the USA to the world market.

Not sure if this would give you the right kind of exposure, but maybe a spreadbet on Natural Gas?

http://www.igindex.co.uk/spread-betting/commodities-bet-details.html

Not sure how the charges would work for a long-term approach.

Masomnia

Radiantsoul wrote: »

Those reserves are not yet cost effective, and prices in the EU and UK are likely to be quite volatile as they are not really connected to the US market. Gas in Europe seems to come from Russia and in the UK it is a mixture of the North Sea, Norway, and increasingly LNG.

In the longer termer term the US will increase its consumption and build LNG export terminals(these costs billions) and this will probably increase prices.

'Yet' being the key word. You're effectively gambling on a spike and relying on your ability to spot the bottom and top of it in a volatile market.

I reckon the companies developing the technology along with exploration companies are a better bet.

sabretoothtigger

There is a USA export terminal already as well as one in the UK to receive LNG by boat.

We import energy, so does USA but they have tons more

Its a terrible price now but places like Japan and Germany are losing Nuclear power altogether and gas is extremely safe in comparison. Witness that north sea screw up, massive leak no great problem resulted.

You pay futures or bets of any kind, you are paying for finance cost and storage of something we have too much of. This whole deal has to be a ten year view, thats a long time to wait and pay. Its clearly investment not speculation that will profit

Buffet had the right idea, buy a giant train set. If its resources that will be exported, transport will likely increase in value. RGNC is a pipeline royalties partnership, nice yield but complicated taxes