Natural Gas Prices

Energy experts across the world share the beliefautomobiles, food and industrial sectors.The wholesale
that natural gas is most likely to displace gasoline inprice of natural gas in the US during the 1990s was
the future, since natural gas is a cleaner and a moreabout $2 per thousand cubic feet (Mcf). This price,
efficient fuel than gasoline. Moreover, with oil suppliesaccording to the U.S. Energy Information
getting smaller with each passing day, natural gasAdministration, is predicted to reach $9 per Mcf
would perhaps be the only option left for meeting allduring the current 2005-2006 winter seasons.Natural
energy needs. Not surprising, natural gas today isgas prices seem to be affected the most by
experiencing rising popularity in the US, Asia andweather conditions. This sensitivity to weather is
Europe. Another crucial factor that is driving theevident during winters, when people tend to use
popularity of natural gas is the concern that oilmore gas for generating heat. During summers there
supplies are getting exhausted very fast.simple supplyis an increased demand for cooling, which translates
and demand model dictates natural gas prices. Asto a higher demand for electricity to power
supplies become scarce and demand picks up, theair-conditioning units.Analysts who have observed the
price of natural gas increases. Consequently, naturaltrends in natural gas prices in recent years are of the
gas price treads an extremely tight balance betweenopinion that natural gas as a fuel option is a disaster
supply and demand in its endeavor to meet increasingwaiting to happen. The analysis is not without reason.
demand from homeowners, businesses, factories,It is now clear, from recent happenings that a few
schools and power-generation plants. Today, naturalmonths of inclement weather can result in severe
gas meets about one-fourth of the total energyshortages and skyrocketing prices. And worst, there
needs of the US, and is considered the backbone ofis little supply side solution.
the manufacturing, steel, glass, chemicals,