Natural gas is cheap. People are thinking that the price will increase dramatically. Unfortunately this is not going to happen fast.

Natural gas is one of the energy alternatives that is being touted as a “cleaner” alternative to coal and domestically supplied.   With all this positive news, natural gas is still close to its low for the year, and it will continue to flounder in the range for the next year.

Here are some reasons why this will happen.

1.  Storage is almost full, and has never been this high before.

2.  Large companies cannot stop pumping out natural gas, they have debt payments to make.

3.  Mandate by the Government to use clean fuel, and we need to have cheap natural gas to push companies into investing into cleaner fuels.

4.  Natural gas is territorial, and the global thirst for natual gas will not raise the price if the local supply is more than adequate.

5.  Large deposits found in North America

6.  Future of frozen methane deposits that could provide a near unlimited source of energy.

7.  Technology in recovering natural gas is getting better.

Just because everyone is saying that Natural Gas has to go up in price, does not mean that it will.