Natural gas is a type of fossil fuels that is normally located in geological formations called tight sands, shale, or gas. Natural gas is made up of premium quality hydrocarbon gases like methane and ethane, along with trace amounts of other chemicals and minerals. Traditionally, gas was produced by deep sea drilling, but recently new technologies have made it more cost-effective to produce gas from shale. Shale gas is flatter than deep sea gas, which means it is easier to extract. Shale gas can be used directly as a fuel or processed into a liquid called synthetic gas, which can then be used as a fuel or turned into a chemicals manufacturing medium. Because it is so cheap to process natural gas into synthetic gas, it is being used more as a feedstock for plastics and other manufactured products rather than as a fuel.
How Does Natural Gas Work?
The major advantages of natural gas over other fossil fuels are low emissions, easy availability, and relatively low-price volatility. These advantages make natural gas an attractive energy source for both present and future power grids. Hydraulic fracturing, otherwise known as fracking, is a technique used to release gas from shale rocks by pumping water, sand, and various chemicals into the ground formation. The procedure is relatively new, but it has proved to be extremely profitable for the operators. In the past, the most common method used to produce natural gas in the U.S. was mining. Today, the most common method is hydraulic fracturing, but mining is still used in some areas to supply both energy and materials to the market.
What is the Future of Natural Gas?
According to a CFD trading provider in Canada who is an expert in analyzing oil prices, the rising price of natural gas has become a political issue in countries around the world. In the U.S., natural gas costs have increased by almost 50% over the past decade and have increased an average of 19% annually over this period. In many other parts of the world, the cost of natural gas has increased at a higher rate: In Turkey, the cost of natural gas rose by a factor of three in the last decade. In India, the increase in the price of natural gas has led to serious power cuts.
How to Achieve Energy Independence with Natural Gas
The biggest positive impact of natural gas is on the environment. Hydraulic fracturing and other gas production techniques not only release less carbon but can also reduce other pollutants like sulfur and nitrogen oxides, as well as lead and mercury. In 2011, the gas industry was responsible for 24% of total U.S. carbon emissions and the carbon footprint of the entire country was only 8% of that of the U.S.
Benefits of Natural Gas
If you are in the verge of consulting with a CFD trading provider in Canada to learn if trading in natural gas derivatives is a wise choice, you must first know the benefits of the product itself, the natural gas.
Low cost: Natural gas is dirt cheap compared to other fossil fuels like oil and coal. This low cost is one of the biggest advantages of natural gas.
Clean energy: Natural gas is a clean and safe renewable energy source because it is not polluting like coal and oil. It does not produce greenhouse gas emissions equivalent to much larger emitters like the ones produced by our cities and the power plants that generate electricity.
Reduced emissions: Environmentalists cite studies that show the emissions from the gas industry are about half those of the coal industry and that of oil and natural gas are Necklace of Countries: Because of its wide availability and low cost, natural gas is ideal for many applications in the power grid.
