Current Market Dynamics

  • U.S. production of NG falls short of consumption
  • Older NG wells are being depleted
  • Insufficient storage capacity
  • Increasing U.S. population
  • Foreign Demand
  • Strengthening Environmental Laws
  • The push for NG powered vehicles
  • Shift to NG in all power plants
  • High oil prices

Incentives for investment

  • Incredible Tax Incentives
  • New Income
  • Direct Ownership
  • Superior ROI
Government View
  • Encourages domestic drilling with special tax breaks
  • Mandated Natural Gas usage over oil and coal
  • Natural gas is now deregulated
NATURAL GAS PRICES - The natural gas used in the U.S. is mainly from North American resources. We haven't fully developed the infrastructure to import natural gas in a liquefied state from overseas. Natural gas is a clean-burning, preferred fuel choice that powers most new homes and buildings, as well as power plants.

But government policies have been inconsistent. Policymakers and environmentalists have traditionally encouraged natural gas use because it was clean-burning and abundant in the U.S. However, the same groups have discouraged the exploration and production of new domestic gas supplies.

This paradox creates another supply-demand imbalance. The increase in natural gas demand isn't being met with new supplies. Thus, prices rise.