Energy Commodities: Invest in Crude Oil Refineries
How Emerging Market Funds Provide Exposure to Energy Commodities
Energy Sector Commodities: Uranium Mining Companies

NGVs May Effect the Natural Gas Commodities Market

It’s not a widely known fact, but natural gas is a commodity used in a number of vehicles (approximately three million worldwide) as a source of fuel. These vehicles, known simply as natural gas vehicles (NGV), run on a grade of natural gas called compressed natural gas (CNG).

This usage accounts for only about 5 percent of total natural gas consumption, but demand for NGV may increase as a viable (cheaper) alternative to gasoline (a crude oil derivative).

Recently, NGVs have become much more prevalent. As of 2010, more than 11 million NGVs are in circulation worldwide. The most dominant countries using NGVs are Pakistan, Argentina, Brazil, and Iran. Expect to see more of these vehicles on the road as countries continue their shift toward cleaner sources of transportation fuels.

Keep a close eye on technological developments of natural gas in the transportation sector. If natural gas grabbed a slice of the transportation market, which now accounts for almost two-thirds of crude oil consumption, prices for natural gas could increase dramatically. For the latest on NGV, consult the International Association of Natural Gas Vehicles.

blog comments powered by Disqus
Qualities of Coal Available for Commodities Investment
Energy Investing: Supply and Demand of Coal
Energy Investing: Natural Gas Supply and Demand
Energy Sector Commodities: An Introduction to Big Oil
Energy Investing: Natural Gas Markets