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Top Natural Gas Stocks for 2022

by | Oct 8, 2022 | Green Investments

Introduction

We have used natural gas as a resource in heating, cooking, and electricity production for decades. It has recently begun to feature more prominently in industrial applications and as a fuel source for automobiles. Its usefulness across a broad spectrum is why companies dealing with this fuel make it to the top natural gas stocks for 2022.

Natural gas is a non-renewable fuel source. However, it still remains a top-rated source of fuel even as consumers shift to renewable sources of energy. The price of natural gas shot up after the Russian invasion of Ukraine since Russia is one of the world’s major natural gas producers.

It isn’t easy to find companies that deal purely with natural gas. Most energy companies have sizeable natural gas businesses along with oil, coal, and a mix of renewables.

Top Natural Gas Stocks for 2022

From an environmental perspective, natural gas is an attractive energy and fuel source. When used to meet our energy demands, natural gas releases around half to one-third of the carbon emissions of coal-fired plants. Even though it emits less carbon than coal, it produces the same amount of energy as coal.

Natural gas is a popular choice for energy-intensive industries. Chemical industries use not only natural gas as an energy carrier but also as raw material in the production of fertilizers, plastics, and medicines.

Vehicles running on natural gas produce carbon emissions 20-30% less than vehicles running on petrol. Natural gas also finds many uses in conjunction with renewable energy sources. Energy from solar and wind farms is intermittent. Therefore, some renewable energy providers use natural gas to provide a stable baseload of power.

The Intergovernmental Panel on Climate Change (IPCC) stated that using natural gas in place of coal will be significant in reducing global carbon dioxide emissions. Natural gas can play a vital role in a world facing considerable climate change challenges.

The Best Natural Gas Stocks for 2022

1. Cheniere Energy

Cheniere Energy is the largest producer and exporter of Liquefied Natural Gas (LNG) in the U.S and second largest LNG operator in the world. It obtains, transports, liquefies, and delivers natural gas. It is a global provider of clean, secure, and affordable LNG.

It provides LNG to markets on five continents. The company says they expect the demand for their fuel to grow as countries worldwide seek newer and cleaner ways to power their economies.

2. EQT Corporation

EQT focuses on obtaining natural gas from the Appalachian Basin. The company is one of the world’s lowest-cost natural gas producers. They are also working towards reducing their emissions arising from operations. The company reported a 21% decrease in their scope 1 emissions in 2020 compared to 2019.

3. Equinor

Equinor is a Norwegian state-operated energy company. It is Europe’s second-largest gas provider after Russia. It produces the natural gas equivalent to the consumption of more than 50 million European households. Their produced natural gas volumes account for more than 20% of the gas market in Europe.

The company uses carbon capture and storage technologies to reduce its carbon emissions. It aims to become a leader in the energy transition. They have accelerated their investments in renewable energy and new technologies building low-carbon markets and industries to achieve this.

Top Natural Gas Stocks for 2022

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4. BP

BP is a London-based energy company. The company operates in North and South America, Europe, Australasia, Africa, and Asia. The company first started out dealing with coal, then oil, and then natural gas.

While natural gas still forms a large part of its operations, the company is moving towards a new mix of energy sources to keep up with the world moving towards a low-carbon future.

The company will be very different by 2030 as they pump more investments into low carbon technologies and reduce emissions associated with its oil and gas production.

5. CNX Resources

CNX Resources is a natural gas company. The company has focused its operations in the major shale formations of the Appalachian basin. In 2021, the company’s natural gas production stood at 590 billion cubic feet. It has also committed around 30 million dollars towards improving the lives of the Appalachian communities. The company ensures that locals get opportunities to grow.

6. Shell

Shell is an international oil and natural gas company. The company was founded in London. Its expertise lies in the exploration, production, refining, and marketing of natural gas and oil. The company sold 64.2 million tonnes of LNG in 2021.

Following the war in Ukraine, Shell withdrew from Russian oil and gas. The company has targeted 2050 as the year it will become net-zero. By 2050, Shell aims to provide enough renewable energy to meet the demands of 50 million households, operate 2.5 million electric vehicle charging points, produce 8 times more low-carbon fuel, and increase their production of biofuels and hydrogen from 3% to 10%.

They are also working towards reducing waste from their operations and increasing the amount of recycled plastic in their products.

Top Natural Gas Stocks for 2022

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Conclusion

Natural gas produces less pollution and releases fewer greenhouse gases than its counterparts.

It is not as clean as solar or wind, but natural gas is the cleanest fossil fuel. When we burn natural gas, it releases 45% less carbon dioxide than coal, 30% less than oil, and 15% less than wood.

Many consider natural gas to be a key player as the world transitions to a cleaner and greener future. Their future potential for extensive growth will benefit investors in the natural gas sector.

When powered by natural gas, vehicles, power plants, and appliances are highly efficient. The high efficiency of this clean fossil fuel makes natural gas a greener energy option. It is also why the stocks of this fuel are the top natural gas stocks for 2022.

The economic growth of natural gas stocks makes them smart investments for the long term.

Natural gas forms a vital ‘bridge fuel’ as we transition to lower carbon energy alternatives.

Experts predict that the demand for natural gas will grow in the coming years. The growth will make it an important market for investors.

 

 

Author

  • Sigma Earth

    The author has done a master's in Environmental science and is currently working as chief Environmental Advisor with New Delhi State Government.

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