Natural gas is a fossil fuel formed from dead plant matter trapped between rock deposits deep beneath the earth’s surface. Its main component is methane, which is a chemical compound with one carbon atom and four hydrogen atoms. Natural gas also contains some hydrocarbon gas liquids and non-hydrocarbon gases.

In this guide to understanding NG commodity, we’ll explain why it’s valuable, discuss the history of this energy product, describe how it’s produced, and explain what drives its price.

Natural gas is a fossil fuel formed from the remains of dead plants and animals. Its main component is methane, a chemical compound with one carbon atom and four hydrogen atoms. Natural gas also contains some hydrocarbon gas liquids, including ethane, propane and butane, as well as impurities such as nitrogen and helium. This guide explains what natural gas is, its value, how it’s produced and what drives its price.

This guide to understanding natural gas as a commodity, plus a natural gas price chart, will help you make informed decisions about your energy options. In this guide, we’ll explain why natural gas is valuable, describe how it’s produced and processed, discuss its history as a marketable commodity, and explain what drives its price.

Natural gas is a fossil fuel formed from dead plant matter trapped between rock deposits deep beneath the earth’s surface and composed primarily of methane. The commodity is extracted from natural gas deposits through drilling or by eradicating oil from an oil field. The gas is then separated from other materials, such as propane and butane. Natural gas is used as a fuel for cooking, heating, electricity production and in certain industrial processes.

Natural Gas is a critical component of your energy mix. This guide will take you through understanding natural gas as a commodity. It includes information on why it is valuable, the history of the industry, how it is produced and what drives its price.

Understanding the value of natural gas requires knowing that even though it’s a naturally occurring substance, it must still be produced. This means that its price will always be set by how much companies invest in creating supply and how much they invest in building new demand.

Natural gas has a lot of value. It provides clean, reliable and affordable energy. As a commodity, its price is determined by the open market based on supply, demand and transportation costs. The growing need for natural gas around the world will continue to support the value of this important commodity online.

Investing in natural gas can open up new trading opportunities and diversify your portfolio. Learn more about the fundamentals of natural gas and consider whether you should invest today.

EIA defines "dry natural gas" as natural gas consisting primarily of methane, which is produced from natural gas wells, associated with crude oil production, or recovered as a part of refining processes. Natural gas does not include condensate and natural gas liquids (NGLs).

In this guide to understanding natural gas as a commodity, we’ll explain what it is and why it’s valuable. We’ll discuss the history of this energy product, describe how it’s produced, and explain what drives its price.