High Natural Gas Prices

Essay by jah_rule24 February 2005

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High Natural Gas Prices

"Natural gas seasonal prices staying high" is the title of an article written by Josef Hebert from the Associated Press on June 8, 2004. The article discusses the amount of natural gas stored in the United States as well as the growing demand of natural gas and how the pricing will stay high throughout the summer months of 2004.

Natural gas has thousands of uses approximately 23 percent of the energy consumption of the United States is from natural gas. More than one-half of the homes in the United States use natural gas as their main heating fuel. Over 61.9 million homes use natural gas to fuel stoves, furnaces, water heaters, clothes dryers, as well as other household appliances (Energy Information Agency www.eia.doe.gov). The essential raw material for many common products is natural gas; these products include explosives, medicines, photographic film, dyes, antifreeze, plastics, fertilizer, and paints.

Natural gas is also used to produce steel, glass, paper, clothing, brick, electricity and list could go on the World industry depends on natural gas. Because of the wide usage of natural gas when the prices fluctuate it affects all of us (Energy Information Agency www.eia.doe.gov).

In the year 2000, the United States natural gas consumption reached 22.6 trillion cubic feet and has continually risen since that year. In the year 2000 the consumption of natural gas in the electric utility and industrial sectors moved in opposite directions. Industrial consumption was 9.5 trillion cubic feet of natural gas while the electric utilities consumption of natural gas was 3.0 trillion cubic feet. It is estimated that by the year 2020, the United States projected consumption of natural gas will be between 28 trillion and 32 trillion cubic feet with the majority of the increase being used for electricity generation (Energy...