Natural Gas Prices on a Downward Spiral

Did you notice that your natural gas bills were quite low this winter season? I sure did! I had my heater cranked this season and was expecting enormous heating bills but instead was quite shocked when I didn't have to sell a kidney to pay my bills.

I started researching the natural gas market because truly my heating bills were ridiculously low. I stumbled across an article in The Wall Street Journal that answered the mystery.

As it turns out, natural gas prices have hit a record low partly because of the recession. Seems the demand from industrial users has declined and that means the US now has an abundant supply of natural gas in storage so to speak. The supply and demand factor is off kilter, too much supply of natural gas and not much demand.

As this is bad news for natural gas producers, it does mean we, the consumers, can expect natural gas prices to stay low.

To learn more, read the article Spring is Next Test for natural Gas Prices.

Comments

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Good post.Natural gas is a gas consisting primarily of methane. It is found associated with fossil fuels, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills. It is an important fuel source, a major feedstock for fertilizers, and a potent greenhouse gas.