Natural Gas: Winter Outlook

By PlanetLaundry staff | Nov 03, 2009

The American Gas Association, the national trade association for 202 local natural gas utilities across the United States, recently held a press conference announcing that natural gas customers can expect lower bills on average this winter compared to last year. Plentiful domestic natural gas supplies and lower wellhead prices will drive bills down this winter and provide relief for natural gas customers struggling in a troubled economy, according to the trade organization.

The Potential Gas Committee, a volunteer group of scientists and energy experts, reported in June that there is enough natural gas in the United States to supply the country for at least a century. New and advanced exploration of shale basins and other gas sources has led to an unprecedented amount of natural gas available to the marketplace.

Some factors, particularly severe weather, could affect the demand for, and price of, natural gas. But because utilities purchase natural gas from suppliers throughout the year and store it in underground facilities for winter delivery, barring extreme temperatures for extended periods natural gas prices will likely remain low this year.

“When utilities were purchasing gas to put into storage during the spring and summer months of 2009, wellhead prices were way down, so it makes sense that natural gas customers will reap the benefits of those unusually low prices this winter,” said David Parker, AGA president and CEO.

Of course, most local natural gas utilities offer billing plans that help spread the winter heating costs over many months. In addition, end-users can take some simple, inexpensive steps – such as caulking around doors and windows, installing programmable thermostats, and insulating their water heating systems – to reduce their monthly heating bills.

“We’re pleased to report that customers will have ample access to natural gas when the weather grows cold,” Parker said.

For more information on energy-saving tips, please visit aga.org.