Natural gas in the past few years has been becoming increasingly popular due to reduced emissions, high efficiency, and effective and easy usage in all sectors of the economy .Also natural gas industry has been greatly helped by the Green movement , that wants the developing and developed nations to cleaner sources of energy.

With the pressure of the green movement and natural gas industry , the developed economies are increasingly transitioning to natural gas to meet their industrial requirements
Some of the biggest advantages that are fuelling the growth of natural gas are:

Reduced capital cost of natural gas fired power plants
Ease in handling
Reduced carbon emissions and no sulfur emissions
Higher energy efficiency compared to gasoline, fuel oil, or diesel
Lower capital costs to the clean coal technology

Also , BP mega oil spill and the several coal mining accidents that have occurred ,will help the natural gas industry in advocating the replacement of coal and crude oil . Also , with a potential depression/Recession in the developed economies will continue to keep the natural gas spot prices low .Also , the ban on offshore oil drilling will further the cause of natural gas as oil production has peaked will further the demand for natural gas as a replacement for crude oil as a means of transport in the form of CNG(compressed natural gas).

Also, there is an overabundance of natural gas which will continue for many years due to massive discoveries of conventional and unconventional natural gas sources ,which will keep natural gas cheap for many years to come.

Maninder Singh Batra writes:

By Maninder Singh Batra

maninder300@hotmail.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Comments

Parry
26 Nov 11, 20:39

Why nothing will replace crude oil

There is a common misconception with oil.

and it's simple. It's not used just for fuel and energy!!!

Just to name a few... Diesel, Tar, Medicine, Make up, Synthetic Fibers, Washing Detergents, Photographic film, Paint, Dyes, Plastics and food additives. and literally thousands of other life's little luxuries that we take granted for would be greatly impacted or lost completely without oil.

To lay it out bluntly. Only oil or a synthetic of it can replace oil.

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