Archive for the ‘Investing In Energy Stocks’ Category
Natural Gas Futures – Best Way to Invest
If you are looking for an excellent way to invest, natural gas futures are a sure bet. When you trade natural gas futures, you will need to follow the market and even be aware of the weather. Natural gas is really not a renewable resource which makes it quite valuable. However, natural gas prices are nowhere near the price of oil, even though it is still considered a fossil fuel.
Natural Gas Prices – Ride The Rollercoaster
When you decide to invest in natural gas futures, you will need to follow the natural gas prices. There are many factors that will make natural gas prices go up and down. Natural gas is an exchanged traded fund and you will need to have a broker handle the transactions for you. If you enjoy watching the markets go up and down throughout the days, you will enjoy watching natural gas prices go up and down throughout the day, too. The natural gas etf is a very tradable commodity that can help you make a lot of money. Getting in at the right time is key, so keeping a close eye on the movement of gas prices to maximize profits.
Lucrative Futures Investment
Trading natural gas futures can be very lucrative. Because energy resources are very valuable today, you are guaranteed to make money off of them. You might have to keep your money in the futures for a little while, but over the course of time, you will make money because the investment market for natural resources is quite profitable.
Stay Aware of Your Investment
Because most brokerage houses are quite busy, it is a good idea to watch the natural gas etf so that you know when it is time to buy and sell. If you are a small investor, then the brokers might not be watching your accounts as rigorously as they watch their bigger investors’ accounts. You should always know what is going on with all of your money, no matter where it is and how much you have in any place.
Profitable Natural Resource
If you want to invest in a profitable natural resource, you cannot go wrong with natural gas futures. The natural gas prices are continually in flux and if you get your money in when the prices are lower, especially in the summer months when most people are not using as much natural gas, you will be able to sell during the winter months when there is more demand for natural gas. You cannot go wrong when you decide to follow natural gas prices to try to make money.
Keep Your Eyes on the Prices
It is a good idea to know that any investment can be risky, so with that in mind you should keep your eyes on the natural gas prices. If you have a smart phone, you can get apps that will follow whatever market that you want to watch. You can also watch specific investments. This way, even if you are not near a computer, you can keep your eyes on the natural gas etf, so you know exactly how your natural gas futures are trading. Right now, ETF prices are VERY low. Many have lost money here over the past few years, but their loss can be your gain. These prices will not remain this low forever, and certainly cannot fall much more, so it may be a good time to step in and buy.
Betting on the Future
Natural gas futures are an unusual investment because you are trading on the later prices of natural gas. Most other investments trade on the current price, but these investments trade on future prices. But, when you watch the natural gas prices and you become familiar with what causes them to go up and down, you will have a better grasp on the reasons why natural gas prices increase and decrease throughout the course of a day, month, and year.
Any Investment is a Risk
Any investment can be a joy or a real pain. But, when you choose to invest in natural gas futures, you have a relatively safe bet. Because people will always be using natural gas as a home heating fuel, you can rest assured that the commodity will continue to be valuable. And, since natural gas is a fossil fuel, there is a limited amount of the commodity. That is another reason why natural gas prices will continue to go up over time.
If you decide to invest in natural gas futures, being aware of the natural gas etf and natural gas prices will make your investment a safer bet than if you just let a broker do all of the work.
We’ve seen this a lot lately… a new committee to help protect this and that. Well, we can add natural gas to that list. President Obama just signed a new order to form a group that will keep more than 13 Federal agencies “in the loop” when creating regulations and new policies pertaining to natural gas. The committee will be comprised of members of thirteen Government agencies, such as the EPA and Department of Energy.
One of their main focal points will be on fracking, or Hydraulic Fracturing. This is a process in which large amounts of water, sand, and pressure are used to free natural gas from it’s underground storage in shale rock deposits. Because of the large amounts of chemicals typically used in the water during the fracking process, many environmentalists are opposed to the process. Their fear is that the dirty water could potentially mix with ground water.
Natural Gas Production On The Rise
In recent years, the production of natural gas has increased dramatically. It’s emerging as one of America’s top sources of energy, making up about 1/4 the total energy used in 2011, and still rising. Local economies have also skyrocketed in regions where shale fracking is prominent, such as Ohio & Pennsylvania.
As expected, environmentalists have strong words for industry leaders and the Government alike. The increase in production has only served to intensify the debate.
On Friday, Obama invited representatives from various business, as well as groups like the American Petroleum Institute, to the White House to put together a plan to make sure everyone is one the same page when the regulations are put in place.
The White House released a statement citing that the Obama’s plan is mostly well received amongst those who were present for the meeting. While most groups were very adamant about leaving the primary regulations up to each State, they were particularly interested in streamlining the regulation process by eliminating regulations which are redundant.
Here’s a great video interview to watch which covers the natural gas stock investment strategies of Intrpeid Capital Fund, headed by Mark Travis. There’s a few good stock picks in here… Mark mentions Bill Barrett Corporation (BBG) as one of their better performing stocks right now. They are an oil and gas drilling company operating out of Northwestern Colorado. After doing some research, found that BBG has just recently closed on a $150M purchase of more than 28,000 acres in the Denver-Julesburg Basin. The company plans to begin exploration and drilling operations in the area by October 2012, so keep a close eye on this company.