These commodities have taken the globe by storm since the discovery and use of Crude oil & Natural gas. Their dominance has meant that the entire world economy is dependent on their production and availability. They are irreplaceable types and have dominated international commodity markets.
It is the result of millions of years-old deposition and decomposition from dead animals and plants below the crust of the earth. The natural gas commonly known as natural gas was found in the deep recesses of the earth’s crust. This gas can be extracted using the drilling methods used to explore and drill for natural gas.
It is most commonly extracted as a byproduct from the drilling and extracting of crude oil. This naturally occurring gas was often discarded and burned off in the past. Since it is believed to cause death and suffocation, the gas was considered to be a danger for oil drillers. It was thus branded as a hazardous side product.
The technological advances made it possible to make this gas, which was mainly made of methane (a hydrocarbon), a fuel that can be used in many industrial applications. These applications were used in a variety of ways, including heating and fueling automobiles or trucks. These applications made natural gasoline a vital fuel on an international market. Canada Natural Gas prices soared because of the high demand.
Studies on the environmental effects of natural gas to the Earth’s current environment have revealed that it is a very clean fuel. This is because the amount of carbon emissions caused by its burning is significantly less than other fossil fuels. This has prompted the global population to support natural gas. Most governments around world have also made it a point of promoting the use of natural gases as a positive way to preserve the country’s atmosphere.
The international gas market has seen a steady rise of its prices over the past 18-months, as evidenced by the price trend. The main factors that have contributed to the price rise can be attributed attributable to the following facts: the tightening in global energy resources, the rising demand for natural gases and their substitution over crude oil in automobile industry worldwide. Incentives that the government offers to its users. This, combined with other contributing factors has led to a rise in international gas demand and prices. These are all factors that cause global natural gas demand to rise every day. This could help natural gas companies make profits in the years to come from investments in the sector.