Natural Gas Market

Law of Supply And Demand

We have been informed that the fracturing of shale gas reserves will increase supplies to record levels. Increased supply coupled with a stable or declining demand should reduce prices, or so the economic law dictates.

Fact: 1. Natural gas production up for the first three months of 2013 compared to 2010.

January +13%; February +12%; March +11%

Fact 2. Residential consumption* for the same the month’s comparison:

January –5%; February -5%;  March +13

Fact 3. Vectren’s (our local supplier) price for residential customers increased from 45 cents per 100 cubic feet (CCF) in July 2012 to 89 cents in May 2013. This is a 100% increase in one year.

*The increased use natural gas for electric power generation has been a factor.

Source: http://www.eia.gov/naturalgas/monthly/

Paul Hunter contact paulhunter45177@gmail.com