Six reasons why natural gas is a better investment than oil

happy_trading

* Reserves deplete faster than oil (in general).
    * Oil/natural gas ratio: the price of oil divided by the price of natural gas is at an all-time high (or close). This ratio stands at 17 (historically it has been at about an 8 or so). Natural gas prices will go up, oil will decline, or both. Also, natural gas is not a good hedge against the declining dollar (it is for the most part a domestic commodity) and storage capacity is more limited, thus not as admired by speculators as oil. This explains in part why it lagged the spectacular performance of oil of late.
    * At $4 natural gas, it is uneconomical to develop and look for new reserves.
    * No OPEC competition, LNG (liquefied natural gas) imports are uneconomical at these prices.
    * Politically more favorable than coal.
    * After emission caps are implemented natural gas will become a cheaper alternative than politically and environmentally unfriendly coal.”

gege88

thx

buctusa

yam

soulvirus

>84% natural gas tanks are full and sitting there without buyers. LZ, be careful.