Will extraction of shale gas stabilize natural gas prices?

“Black gold” is making this planet turn around. Can you imagine how would our life look like without oil and its companion natural gas? This fact is one of the main preoccupations of every country in the world. Energy stability and sufficiency is becoming one of the top priorities of each country. The most common usage of energy is usage of oil and oil derivatives.

United States of America is still world’s number one producer of oil gas leaving behind Saudi Arabia, Russia and China. Of course, I do not need to mention that United States are also top consumers of gas, oil and oil derivatives. United States as world economic leaders are also leaders of innovation resource management. USA is, at this moment, along with Canada world’s pioneer of shale gas extraction. The huge growth of shale gas extraction is proving to be one of the key roles in the U.S. recovery. “If the U.S. didn’t have this energy supply, prices at the gas stations would be completely unaffordable.” – said Francisco Blanch, Bank of America Corp. head of commodities research.

What is shale gas? To keep it simple, shale gas is natural gas that can be found in shale formations. Experts say that shale gas will be source of overall natural gas production of up to 50%. China is considered to be country with highest reserves of shale gas. Shale gas will definitely change the power relations between some countries as extraction of shale gas will definitely lower down the impact and importance of “Middle East Oil Giants”. As PricewaterhouseCoopers (PwC) report says, by 2035, shale oil production could “boost the world’s economy by up to $2.7 trillion.

In the meantime, our main focus is how to capitalize this information in trading with Binary Options. Is it smart to trade long term in Boundary Option predicting that price of oil and natural gas prices will remain stable or we should be brave and say that it is going down? Either way, as always in Binary Options Trading, timing and expiry time are key elements of successful trade. However you read news coming from world’s economy it is very important to set correct time frame. It is not enough only to know the fluctuation and volatility of trading asset, but it is important to consider when do you think predicted movement is going to happen. In Binary Options Trading, as everywhere, the same rule is important – time is money.

As for shale gas is concerned, it is definitely worth of our attention and it is smart to accept it as one of the key future elements in determining overall oil and gas prices and price trends.

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