We all know what Natural Gas is right? Heres a quick definition if you do not from the dictionary, “Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium.” Natural Gas is used all around the world in our homes, for most of us for our cars. Here are some interesting facts you may not know about Natural Gas.
First, the Good:
Natural gas is doing well and will continue to do so throughout 2018.
When there is plenty of Natural gas to go around, then the supply is often cheap. This may not be true for areas that do not have any as they need to import the gas. For example, “New England area, where politically-motivated pipeline constraints have led the absurd outcome of residents of the states north of New York paying much higher prices than the rest of the country, and having to actually import LNG from Russia in order to meet the region’s natural gas demand.”
The low Natural gas prices have resulted in a “boom” across America. Therefore, new pipelines are being built to accommodate the needs of everyone.
The low prices of Natural gas is not so good for a few states, Louisiana, and Oklahoma. Oklahoma specifically because , “tate government just enacted a major increase in the state’s oil and gas production tax rate as part of an effort to try to close that budget gap.”
The future of Natural gas is not bright with Upstream companies as, “asset bases are heavily-weighted towards natural gas.”