Natural-gas price plunge means savings next winter

[Panhandler]

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

 

[buildingmaint]

I think that a lot of pellet dealers are going to be stuck with WAY WAY over priced pellets that no one wants . No way am I going to pay $300.00 for pellets , if natural gas is less expensive . I will heat with the lowest price , if it gas , or pellets .Glad I have a choice. So keep the prices high pellet manufactures , you will find out that people will go with the lowest price , just like oil and Natural gas dealers did .

 

[dave1966]

saw the same ad in our local paper if it's true there will be no shotage of pellets this year

 

[imacman]

saw the same ad in our local paper if it's true there will be no shotage of pellets this year

Hope your right Dave....since I heat w/ oil (and what's still left in my tank cost me about $3.15/gal), I'll be looking for some great deals on pellets.....anything under $300/ton will save me some $$, but I'm hoping for under $250.

 

[minnow]

Yes this could be the year to wait instead of buying next years pellet supplies in March and April as many of us have become accostomed to doing. At $300/ton it makes no sense what so ever to buy now. If fuel oil stays below $3 bucks a gallon for prebuy this summer, pellet prices will most certainly have to fall or dealers will have to rent a farmers hayfield to store all of the unsold pallets.

 

[BrotherBart]

Those NG prices have started to inch up. Electric utilities that backed off of using gas this last year are starting to fire those turbines back up now that gas is getting so low in price.

So you now go back into competition with the electric company.

 

[JustWood]

Those NG prices have started to inch up. Electric utilities that backed off of using gas this last year are starting to fire those turbines back up now that gas is getting so low in price.

So you now go back into competition with the electric company.

Yep ,it's a little early to be callin' the game now.

 

[mgambuzza]

I've seen a LOT of pellet stoves - some less than a year old-for sale right now on Craigslist. I believe these would be the people that were looking for big savings and no maintenance, and found the opposite. Yes, there can be savings in some circumstances using this type of appliance, and yes there is daily/weekly/monthly maintenance involved. It takes certain people who enjoy both as well as occasional challenges, who are drawn and stick to this type of heating technology. Its sometimes like owning an MG - looks great on the outside - but the experienced owner knows the real story (aka - if its not leaking oil, its out).

My experiences with pellets have been great, I enjoy the challenge of the stoves, avoiding high utility bills, and the "exercise" from carrying tons of pellets for burning every year. I'll continue to use pellets, and if gas prices do plunge enough, pellets will follow and we'll all have some good choices for heating next season!