WHY NATURAL GAS WELLS?
Current Market Dynamics
- U.S. production of NG falls short of consumption
- Older NG wells are being depleted
- Insufficient storage capacity
- Increasing U.S. population
- Foreign Demand
- Strengthening Environmental Laws
- The push for NG powered vehicles
- Shift to NG in all power plants
- High oil prices
Incentives for investment
- Incredible Tax Incentives
- New Income
- Direct Ownership
- Superior ROI
NATURAL GAS PRICES - The natural gas used in the U.S. is mainly from North American resources. We haven't fully developed the infrastructure to import natural gas in a liquefied state from overseas. Natural gas is a clean-burning, preferred fuel choice that powers most new homes and buildings, as well as power plants.
- Encourages domestic drilling with special tax breaks
- Mandated Natural Gas usage over oil and coal
- Natural gas is now deregulated
But government policies have been inconsistent. Policymakers and environmentalists have traditionally encouraged natural gas use because it was clean-burning and abundant in the U.S. However, the same groups have discouraged the exploration and production of new domestic gas supplies.
This paradox creates another supply-demand imbalance. The increase in natural gas demand isn't being met with new supplies. Thus, prices rise.