Chapter 12
Welcome to Gas Vegas, Baby! Trading Natural Gas
IN THIS CHAPTER
Identifying the main uses of natural gas
Figuring out how to pick up on market signals
Taking a look at liquefied natural gas (LNG)
Investing in natural gas companies and futures
If crude oil is the king of commodities, natural gas is sometimes said to be the queen. Although crude oil accounts for about 40 percent of total energy consumed in the United States (the biggest energy market in the world), approximately 25 percent of energy consumption comes from natural gas. Natural gas is therefore an important source of energy both in the United States and around the world, and it can offer tremendous moneymaking opportunities.
Similar to crude oil (see Chapter 11) and coal (see Chapter 13), natural gas is a nonrenewable fossil fuel found in large deposits within the earth. As a matter of fact, natural gas is sometimes found not too far away from crude oil deposits. Crude oil is the liquid fossil fuel, coal is the solid one, and natural gas is the gaseous fossil fuel.
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