Natural gas prices have plunged as newer technologies are now available to access natural gas from shale formations, and the lower prices have increased the use of natural gas in electricity generation. Natural gas releases half as much carbon dioxide as compared to coal. If coal prices continue to rise, natural gas in power generation could surge 35% by 2030 while reducing emissions by 44%.
If drilling bans become more popular in other major natural gas cities, a price spike for natural gas could be in the offing. Many of the long-only natural gas ETFs are above their long-term trend lines, so consider them if you believe that continued good performance is likely.
For more information on natural gas, visit our natural gas category.
- United States Natural Gas (NYSEArca: UNG)
- United States 12-Month Natural Gas (NYSEArca: UNL)
- First Trust ISE-Revere Natural Gas (NYSEArca: FCG)
If you’re interested in leveraged natural gas exposure, check out Direxion Daily Natural Gas Related Bull 2x Shares (NYEArca: FCGL) or ProShares Ultra Oil & Gas (NYSEArca: DIG).
Max Chen contributed to this article.