Natural gas is believed by many to be the most important energy source for the future. The abundance of natural gas, worldwide as well as domestically, coupled with its environmental soundness and multiple applications across all sectors, means that natural gas will continue to play an increasingly important role in meeting demand for energy in the United States.

 

There are three main factors that determine Natural gas Price:

 

Weather - Natural gas demand typically peaks during the coldest months and tapers off during the warmest months, with a slight increase during the summer to meet the demands of electric generators.

 

Fuel Switching - supply and demand in the marketplace determine the short term price for natural gas. However, this can work in reverse as well. The price of natural gas can, for certain consumers, affect its demand.

 

U.S. Economy - The state of the U.S. economy in general can have a considerable effect on the demand for natural gas in the short term, particularly for industrial consumers. When the economy is expanding, output from industrial sectors is generally increasing at a similar rate.

 

The EIA estimates industrial energy demand to increase at an average rate of 1.1 percent per year to 2020. The demand for electricity is predicted by the EIA to increase by an average rate of 1.8 percent per year through to 2020.

 

Natural gas is a vitally important source of energy for all sectors of the economy in the United States. Maintaining an adequate supply of this important resource is thus extremely important to preserving and improving our quality of life.  We are pleased to be apart of such an important role.

 

 

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