EB5 Analysis on Gas wells and other risky investments
Problems with Natural Gas
The U.S. is both the largest producer and the largest consumer of natural gas in the world.
However, the natural gas sector is “choppy and lifeless”, according to a September 2023 analysis by Investing.com. Their commodities expert even named natural gas as likely the single worst performer in both the commodities market and the overall market.
This is due to a variety of factors, both domestically and globally, including slowing demand and a volatile marketplace.
Market Volatility
Natural gas is the third most-traded commodity in the world, due to its extreme market volatility.
“Volatility in natural gas demand often leads to big spikes and declines in its price,” reports Garry White, Chief Investment Commentator of U.K. investment firm Charles Stanley. “The risk involved in derivatives trading can even result in professional investors losing a substantial amount of money.”
With commodities experts around the world warning against individual investment, the natural gas market is simply too volatile and high-risk to rely on for EB-5 investment.
Weakening Forecasts
Natural gas demand grew by 20 percent in the 2010s. However, natural gas prices have weakened in recent months, as forecasts for consumption have cooled.
S&P Global predicts global demand for oil and natural gas will peak in 2031 at approximately 110 million barrels per day.
The International Energy Association (IEA) anticipates only a five percent increase in natural gas demand in the 2020s, followed by a long-term decline due to the rise of renewable energy sources.
Read the entire article here: https://eb5visainvestments.com/2023/12/19/mining-and-natural-gas-risks-for-eb-5-investors/