The natural gas sector is poised to grow over the next decade. This is the time to get in on any natural gas industry investments while it is still cheap. There are many good reasons for this expected growth. The following are the reasons why natural gas, also know just simply as gas, will explode as an industry over the next several decades.
Alternative to Oil and Coal
The most obvious reason the gas industry will grow is because its the best and cleanest alternative to oil. There are many reasons why this is important to understand.
First, natural gas burns about 30% cleaner than oil and about 40% cleaner than coal. The reason this is important is because there is a major cultural and political push for cleaner energy and gas will be their savior.
So why not wind or solar energy? Well, because both of these clean and renewable energy sources are still decades away from being able to provide a chunk of our energy needs. It is still expensive to produce and the technology hasn’t advanced for it to run factories, cars and major industry. So gas will save the day when it comes to the environment.
Dependence on Foreign Oil
One of the biggest national security issues of our time is our dependence on foreign oil. Our need for oil influences how we deal with countries that are rich in this fossil fuel like Iraq, Saudi Arabia and Venezuela. There has been an outcry to get off our dependence for decades.
Gas is a great solution to this problem because the US has tons of reserves of natural gas. We are sitting on 238 trillion cubic feet of proven gas reserves, with another 1.8 quadrillion cubic feet of probable reserves. We have enough gas domestically to provide for our energy needs for the next 100 years.
Investing In Growing Sector
So what is the best way to invest for this expected growth? Find stocks that are in the gas industry. This would include drilling and refining companies. It would also include companies that provide products and services to this industry as well. If you don’t have the time to look, just buy a natural gas ETF which invests in individual stocks in this sector. This sector is poised to grow and you should get in on it sooner than later.
