The best alternative to our energy crisis is natural gas. There are many options out there for cleaner, more renewable sources of energy like wind and solar power. However, those technologies are decades away from advancing to the point where society and our economy will be able to make regular use of it. Wind and solar is still not a significant enough source of energy to replace oil, but natural gas is.
Benefits of Natural Gas
There are many advantages to gas that is not present with the other clean energy sources. First of all, our technologies can be easily and cheaply converted to use natural gas instead of petroleum. In fact, many vehicles are increasingly becoming natural gas powered. This is not the case with solar cars. Solar powered cars are decades away from being viable. And there is currently no design on the table for wind powered vehicles.
Additionally, natural gas is plentiful. We currently have nearly 238 trillion cubic feet of proven gas reserves in the United States with another 1.8 quadrillion cubic feet that is estimated to be underneath our feet. Some experts say we have enough gas to fuel our economy for another 100 years. That should be enough time to figure something else out. In the mean time, the gas industry is going to be booming.
The other very important reason for the rise of gas is it will take us off our dependence on foreign oil. That is a rallying cry for many Americans, to get off our dependence on the constantly unstable Middle East. Gas is our way out and it will increasing become more in demand as the years go by.
How to Invest in Gas
There are several ways to play the gas market. One way to make it easy on yourself is to invest in a natural gas ETF. There are 2 major kinds, commodity funds that do futures trading and ones that just invest in natural gas stocks. That latter is recommend for a number of reasons.
You can of course invest in individual natural gas companies that do drilling and exploration. Or you can invest in companies that sell equipment for those activities. You can also do commodity futures, but that won’t really be a good long term investment strategy because futures contracts have end dates. I would stay away from any futures related until you really understand the in’s and out’s of this market.
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