Besides its price volatility, consumers essentially have no storage capacity for a commodity used in very large quantities and is critical for many operations. It s a true case of inventory on demand. Perhaps the most unusual element of selling natural gas is that from the moment it comes out of the ground until it is consumed at the burnertip or in the reactor vessel, it is never touched or seen. It is always in a pipeline. Part One focuses on the producers alternatives for selling gas.
Natural gas is big business worldwide.
In addition to the physical markets for selling and trading natural gas, there are large financial markets. Buyers and sellers create a market to either hedge the risk in buying and selling gas or as a money-making investment. The hottest and newest markets for trading gas are e-business. A major market began in November 1999 with EnronOnline. With volume like this, selling natural gas should be a slam-dunk.