Elliott

UNG: The Best Way to Invest in Natural Gas

Today's quotes: front month gas futures = $3.65, next month = $4.61. That one dollar premium is a steep fee to pay every month when holding UNG.

Rough Times Ahead for Natural Gas

Working gas in storage is 500 Bcf above normal and producers continue to inject more at the rate of 60 to 70 Bcf a week. Storage usally peaks around Nov 1 and then is drawn down at approx rate of 450 Bcf per month during winter. Just to draw down the excess in storage is probably going to take until December, even longer if we get the expected mild El Nino winter.

Natural Gas May Be Just the Solution for This Economy

Correct. That's why big rigs, construction equipment, tractors, etc. should remain diesel-powered.

Commuter cars should be electric, once we get battery technology improved. The beauty of electric auto power is that the electricity source is diversified -- it can come from nuclear, nat gas, hydro, solar, wind, etc.

Electric motors are miles ahead of internal combustion engines on efficiency. 75% of energy applied to electric motors propels the car forward and 25% is wasted. With internal combustion engines only 16% is converted to forward motion, the rest is wasted in mechanical losses and heat.


On Jul 21 10:23 AM Wisdom vs. Information wrote:

> NG has much less energy per volume than diesel

Natural Gas May Be Just the Solution for This Economy

Electric cars should be the goal. Electric motors are far more efficient than any gasoline, diesel, methanol or natural gas engine. The only barrier remaining that holds electric cars back are the batteries. Government and private industry should work to improve battery technology to reduce weight and improve range. Once that happens, then natural gas can be used for electrical generation, which in turn can be used to fuel and recharge electric cars. This is better than trying to retrofit all of our gasoline stations over to natural gas. With electricity, we already have a wholesale and retail distribution system in place.