We are all familiar with the flux of prices regarding fuel. There have been many times recently when gasoline prices have increased based on supply and demand, but what about natural gas? This resource heats our homes and gives us energy. What factors affect the change in natural gas pricing?
1. Supply and Demand – Like everything else, supply and demand has any influence on price. That is why in winter months natural gas prices can increase because people use this resource to heat their homes.
2. Weather – Weather also has an impact because it can increase the demand and use of natural gas. Also, severe storms like hurricanes can slow efforts to obtain natural gas.
3. Imports and Exports – This is often a factor regarding sources of energy. However, the United States gets its natural gas predominately from inside its own borders. This means you don’t have to worry much about the imports and exports; with natural gas, we have enough to fuel our country right from our very own land!
4. Competition Among Other Resources – Natural gas prices can be affected by the prices of other energy sources because they are in competition with one another.
5. Natural Gas Storage – The amount of natural gas in storage is also a factor that can affect price. However, natural gas is a great resource because it can be stored. During summer months, when the demand for natural gas is lessened, we replenish and increase storage, so we have plenty of natural gas for when the demand increases.
There are a few factors that can affect the price of natural gas, but overall this is a great resource to use because it has many advantages. We have lots of natural gas in the United States, so we can get the supply we need. Natural gas is also one of the cleanest burning sources of energy and one of the cheapest. There are many reasons why natural gas is a great resource for energy in your house.