Many Americans rely on safe, efficient and clean
burning natural gas to heat and cool their homes. Natural gas fuels
many manufacturing and electricity generation plants, and is a key
ingredient in products that we use every day.
1.
THE DYNAMICS OF NATURAL GAS PRICES
Natural gas prices paid by consumers and industrial users
have risen sharply over the last year. Look below to learn
why.
NATURAL
GAS SUPPLY AND DEMAND
It all comes down to supply and demand. Natural
gas prices have risen in recent years because more and more
homeowners, businesses and utilities are turning to clean-burning
natural gas while natural gas supplies have remained relatively
steady. This imbalance of supply and demand is likely to continue
in the near term. Although more natural gas wells are being
drilled, it takes time to get natural gas from these wells
to market. Also, many older wells are nearing the end of their
productive life.
Natural Gas Demand by Sector
Note:
Tcf = Trillion Cubic Feet. Source:Energy Information
Administration
Liquefied Natural Gas (LNG) has the potential to diversify
and expand natural gas supplies. How? Find out below.
LNG OPENS
SHIPPING OPTIONS
Most natural gas travels from the well to the
processing facility to you entirely by pipeline. But building
pipelines to reach more remote wells is cost-prohibitive.
LNG is an economically viable means of bringing natural gas
from these wells to market. Natural gas turns to a liquid
when cooled to extremely low temperatures (roughly minus 260
degrees F). This greatly reduces its volume, making it possible
to ship LNG in tankers, just like crude oil. When LNG reaches
its destination, it is unloaded into storage tanks then warmed
back to a gaseous state and fed into the usual pipeline system.
