How are the natural gas prices determined?
There are many factors which play are role in determination of natural gas prices. Here we are listing the ones which have a major impact: – – Weather – Heating /Cooling demand – – Performance, demand and supply of other alternative energy sources – – Oil sands production – – Electricity generation – – Fertilizer production – – Petrochemical production – – Drilling and Exploration Activity – – Production decline rates – – Pipeline transportation constraints – – Storage Balances – – Liquified Natural Gas (LNG) – – Natural Disasters (i.e. Hurricanes) What are the risks of investing in Natural Gas sector? Remember that it is alternative form of energy. Hence, the price and demand and supply of Natural gas will vary depending upon not just the discovery and innovation in exploration of natural Gas, but also vary with the performance and demand and supply and innovation in other alternative energy sectors like Biomass, Solar Energy, Wind Energy, etc.
