Energy Investment Of The Future In The Natural Gas ETF? (NYSE:UNG)
“Even though the drilling moratorium was lifted yesterday by a federal judge, I believe that action is temporary. An appeal has already been filed, and U.S. Interior Secretary Ken Salazar will file a new ban this week. And in addition to ban in the Gulf, most other offshore drilling in the States has come to a standstill. Exploratory drilling has been suspended off the coasts of Alaska and Virginia. The Governator has withdrawn support for a plan to expand offshore drilling in California. And Florida Governor Charlie Christ is looking for a way to permanently ban drilling off his shores. With offshore crude accounting for 33% of U.S. oil production, we’re going to have to find a replacement — and fast. Since total production has been falling for years, you can bet the replacement won’t be more onshore oil. Increasingly, it looks like the answer’s going to be natural gas,” Nick Hodge Reports From Energy And Capital
Hodge goes on to report, “A brief from an energy consultancy I subscribe to said this week that the United States will “increase its natural gas consumption to overcome the decrease in crude supplies.” We’re already seeing this play out in Congress, and the country’s wealthiest investors are already placing bets in response. I recently told you that utilities are already switching to natural gas for baseload generation because of the pressures being place on coal. Now, political officials, security experts, and billionaires are pushing for nat gas to be used as an oil substitute as well. Because the New Alternative Transportation to Give Americans Solutions (NATGAS) Act is already moving through Congress. It would, among other things, offer hefty tax credits for the purchase of natural gas vehicles and require 50% of U.S. government vehicles to run on natural gas.
“We have well over a 200-year supply of natural gas according to current estimates. We have enough to do everything, and we’re going to look like fools if we don’t use it in transportation. The Congress should adopt legislation that significantly enhances the use of domestic natural gas as a transportation fuel for heavy duty trucks and fleet such as that which is contained in H.R. 1835, the NATGAS Act. The Center for American Progress echoed that sentiment in their own report. As I said, the way we choose to meet our immense fossil fuel demand will make or lose fortunes. And as you can see, America’s powerful and wealthy are already pushing a certain approach, and lining up to line their pockets in the process,” Hodge Reports.
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Hodge goes on to mentioned 3 ways to profit and one way was to buy the United States Natural Gas ETF (NYSE:UNG) as a long-term investment. We have put together some more details on the United States Natural Gas ETF (NYSE:UNG) below including some other Natural Gas ETF options for you to take a look at below:
United States Natural Gas ETF (NYSE:UNG) You can also visit our U.S. Natural Gas ETF (NYSE:UNG) category for more insight.
The investment seeks to replicate the performance, net of expenses, of natural gas. The trust will invest in futures contracts on natural gas traded on the NYMEX that is the near month contract to expire. It is nondiversified.
ETFs offer an easy way to play Natural Gas and there are many options available besides the most popular US Natural Gas ETF (NYSE:UNG). We have listed some other options for investors to look at and compare to one another below. Note that we have listed some industry related ETFs as well as direct Natural Gas exposure plays excluding any leveraged ETFs. You can also visit our U.S. Natural Gas ETF (NYSE:UNG) category for more insight.
United States Natural Gas Fund (NYSE:UNG)
The United States Natural Gas Fund, LP (NYSE:UNG) is a new way for investors and hedgers to manage their exposure to energy. The United States Natural Gas Fund LP (NYSE: UNG) is an exchange traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues units that may be purchased and sold on the NYSE Arca. The investment objective of UNG is for the changes in percentage terms of the units’ net asset value to reflect the changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the price of the futures contract on natural gas traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less UNG’s expenses.
United States 12 Month Natural Gas (NYSE:UNL)
The investment seeks to reflect the changes, net of expenses, of the spot price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the average of the prices of 12 futures contracts on natural gas traded on the NYMEX. The fund will consist of the near month contact to expire and the contracts for the following eleven months, for a total of 12 consecutive months contracts, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire and the contracts for the following eleven consecutive months.
iPath DJ-UBS Natural Gas TR Sub-Idx ETN (NYSE:GAZ)
The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones-UBS Natural Gas Total Return Sub-Index. The note is designed to reflect the performance of natural gas. The index is composed of the Henry Hub Natural Gas futures contract traded on the New York Mercantile Exchange.
First Trust ISE-Revere Natural Gas Idx (NYSE:FCG)
The investment seeks to replicate, net of expenses, the ISE-REVERE Natural Gas index. The fund invests at least 90% of assets in common stocks that comprise the index. The index is an equal-weighted index that consists of exchange-listed companies that derive a substantial portion of their revenue from the exploration and production of natural gas. The fund is nondiversified.
iShares Dow Jones US Oil Equipment Index (NYSE:IEZ)
The investment seeks results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Oil Equipment & Services index. The fund generally invests at least 90% of assets in securities of the Underlying index and depositary receipts representing securities of the Underlying index. It may invest the remainder of assets in securities not included in the Underlying index but which BGFA believes will help the fund track Underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. It is nondiversified.
Jefferies | TR/J CRB Wildcatters Exploration & Production Equity ETF (NYSE:WCAT)
The investment seeks investment results that replicate as closely as possible, before fees and expenses, the price and yield performance of the Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity index. The fund normally invests at least 80% of total assets in the equity securities that comprise the underlying index and depositary receipts based on the securities in index. The index is designed to track the overall performance of a universe of listed U.S. and Canadian small and mid-capitalization companies engaged in the exploration and production of oil and natural gas. The fund is nondiversified.



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