Asset Classes


An important fuel source globally, natural gas is a type of gas that consists primarily of methane. It is cheap, abundant, and clean burning. As power plants burning other types of fuel are converted, the use of natural gas for electricity generation is expected to multiply considerably. This growing energy market share for natural gas has made it a popular investment.

More About Natural Gas

  • Historically the price of natural gas has been determined locally - it is hard to transport outside of pipelines
    • Example:  May trader at $9 in Japan but $6 in Europe
    • Requires cooling to -260 degrees in order to convert to liquid and ship (expensive!)
  • Natural Gas is typically discovered and produced along with oil
  • The United states is starting to build export facilities and export in the late 2010s

Counties & Natural Gas

  • Japan must import almost all of it's Natural Gas - this is expensive
  • Europe imports most of its natural gas from Russia
  • Russia is a large exporter of natural gas