Natural Gas (UNG) Higher; Skeptics Come Out of the Woodwork as Cheap Prices Slam Energy Industry

July 30, 2012 10:12 AM EDT Send to a Friend
Natural gas futures are on the move in early trading on Monday. United States Natural Gas Fund, LP (NYSE: UNG) has already tacked on 4 percent and nat-gas futures traders are looking to take out highs at $3.20. Forecasts for warmer weather and potential shut-downs at nuclear power plants are the main factors driving natural gas prices higher Monday.

Last week a Texas professor who said fracking, used in the production of natural gas, was safe for groundwater came under scrutiny when it was revealed the professor pocketed hundreds of thousands of dollars from a Texas natural gas developer. The report puts the credentials of other so-called fracking experts in jeopardy. The safety of fracking in America continues to cause controversy, and this isn’t being viewed as a positive development for natural gas production.

Cheap natural gas is disrupting the entire energy industry. Coal, solar, nuclear - potentially even crude oil prices - are affected by cheap natural gas. It is no surprise that there is a notable up-tick in opposition to the use of fracking technology in the U.S., as the forces-that-be jockey for control over public opinion.

This year several coal companies have already filed for bankruptcy, the solar and alternative energy industries are in shambles, and, over the weekend, reports came out that nuclear energy may not be viable in a cheap natural gas world.


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