Natural Gas Industry is good for Investing

If you are looking for an investment that is at its beginnings, I would look no further than natural gas.  If you’re long in this industry, you can jump right in with a natural gas ETF.  But only do that in the short term.  There are many great finds to be had in this sector.

There are great aspects of this industry that I will share with you a little later.  In the mean time, let me tell you what kind of companies will be good stocks to buy now in for this industry.  There are a lot more than you would think.

The best stocks to buy in this industry will be those that don’t directly drill, explore and refine.  These stocks will be good for sure.  But the best stocks will be the ones that service this industry on the periphery.  For example, companies like Clean Energy Fuels offers natural gas fueling stations for fleets of trucks.

You can also find companies that will be cleaning up the mess that the drillers make.  There are environmental implications for the gas industry.  Look at companies that are positioned in the cleanup of these activities.

Large amounts of water and chemicals are needs in the new technique they have for drilling through shale rock.  So look for companies that provide water resources to gas companies.  Also find out what chemicals they use and who manufactures them to this industry.

They are calling it the golden age of natural gas.  In the next few decades, we will see a massive shift to using more of this fossil fuel that has always taken second place to crude oil.

The biggest advantage to gas for the US is that there is a ton of it here in the US.  Having a sufficient domestic supply is a very important part of our growth, national security and sustainability as an economic powerhouse.