Natural-gas price plunge means savings next winter
The Denver Post
Posted: 04/11/2009 12:30:00 AM MDT
Updated: 04/11/2009 01:04:05 AM MDT
COLUMBUS, Ohio — The 60 million U.S. households that use natural gas for heat can expect substantially lower bills next winter.
Just as distributors start to lock in contracts for the coming winter, natural-gas prices have fallen almost 75 percent. Not all of that drop will be reflected in heating bills, but savings should be noticeable.
About a fifth of the nation's electrical power is generated with gas, so electricity rates also should drop.
New technology this decade has unlocked massive reserves of natural gas in North America, and the jump in supply has collided with a recession that has sapped demand. Natural-gas futures ended the week at $3.61 per 1,000 cubic feet, down from a July peak of $13.69. That's a decline of 74 percent, compared with a 64 percent drop in oil prices over the same period.
Households have yet to see savings in their heating bills because the companies that buy and distribute natural gas in bulk are still passing on the premium prices they paid last summer. The Associated Press
The Denver Post
Posted: 04/11/2009 12:30:00 AM MDT
Updated: 04/11/2009 01:04:05 AM MDT
COLUMBUS, Ohio — The 60 million U.S. households that use natural gas for heat can expect substantially lower bills next winter.
Just as distributors start to lock in contracts for the coming winter, natural-gas prices have fallen almost 75 percent. Not all of that drop will be reflected in heating bills, but savings should be noticeable.
About a fifth of the nation's electrical power is generated with gas, so electricity rates also should drop.
New technology this decade has unlocked massive reserves of natural gas in North America, and the jump in supply has collided with a recession that has sapped demand. Natural-gas futures ended the week at $3.61 per 1,000 cubic feet, down from a July peak of $13.69. That's a decline of 74 percent, compared with a 64 percent drop in oil prices over the same period.
Households have yet to see savings in their heating bills because the companies that buy and distribute natural gas in bulk are still passing on the premium prices they paid last summer. The Associated Press
