The Importance of Conventional and Unconventional Oil in Energy Investing
How to Evaluate Oil and Gas Stocks for Energy Investing
Energy Investing: The Decline of the U.S. Coal Industry

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
The Future of Natural Gas for Energy Investors
Investing in Coal: Producing the World’s Electricity
Coal Master Limited Partnerships (MLPs)
Energy Sector Commodities: How to Invest in Nuclear Power Futures
Energy Investing: Global Oil Demand Numbers