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10 pts

Opinion on  United States Natural Gas Fund LP (UNG)
Natural gas is the fuel of the future

Jun 23, 2008 10:03 AM GMT
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Return Risk
-4.25% MID
Sr. Associate

Peak oil is here.

Natural gas has several advantages
1.it is efficient
2.it is cleaner
3.it is available in large quantities in the US and is economically viable.

China is using natural gas for transport.
http://www.forbes.com/business/feeds/afx/2007/07/19/afx393063...

Alternatives face problems

Ethanol will not work in the face of food shortages and the impending water shortages.Brazil has one of the largest supply of fresh water in the world.Its unique strength cannot be duplicated.America burning corn is just an expensive political gimmick which will collapse in the absence of subsidies.
Solar power panels require a lot of rare metals which could be a limiting factor in widespread use.

http://www.informationweek.com/news/management/showArticle.jh...

Manufacturers of solar panels require large amounts of copper, indium, gallium,selenium and tellurium.

It has diverse uses
1.power generation
2.transport
3.fertilizer production-urea by Haber process.
4.Residential heating purposes.

http://en.wikipedia.org/wiki/Natural_gas#Storage_and_transpor...


UNG:  This call was made on 06/23/08 @ $62.14
Rating:   Positive   $62.14 (06/23/08)
Gain/Loss:   -86.31% in 530 days
Target:   in > one year
Allocation:   1.9% of portfolio


Comments (2)

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barefut   N/A     1 point   commented 530 days ago reply

Natural gas seems to be the solution in the short term. It seems like it's the closest resource that has an existing infrastructure that would just need to be upgraded.

I've done some research on which company out there that has a kit that you can use to convert you car over to natural gas. The one that definitely has the best track record is Galileo out of Argentina - the country that really uses natural gas and has it figured out.

CNGOutfitters.com has kits directly from them, they also have DOT tanks and installation as well. Change the world, change your fuel!

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Thomas George    9 %     1 point   commented 529 days ago reply

Thank you for your comment and votes.

A website with very useful information

http://www.naturalgas.org/overview/resources.asp

http://www.naturalgas.org/overview/uses.asp

The site is a goldmine with lots of information about natural gas.

Factors affecting natural gas prices are explained in layman's terms in this article

http://www.eia.doe.gov/neic/brochure/oil_gas/rngp/index.html

An important point from the article is the statement that most of the natural gas consumption in the US comes from the country itself or from Canada.The significance is that natural gas supplies are obtained from politically stable countries.This would be very important going forward as commodity bull markets are generally associated with political and social unrest.


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Who voted on this idea?
ribbit4u2000 N/A 06/23/2008



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