According to the Natural Gas Supply Association, consumer pricing for natural gas will be going up this winter. Which means it will be more expensive to heat the home for the 57 million households that use gas.
Using published reports from federal and private analysts, the association evaluated the combined impact of the economy, weather, customer demand, gas production and storage inventories on prices for the coming winter, and then compared it to the same factors from last year (November through March). They have estimated there will be a 16 percent increase in demand for heating this winter over last winter, mostly because federal weather forecasters are predicting a colder winter than last.
Basically, Energy Ventures Analysis analysts are finding good reason to expect a much colder winter this year than we has last year.
What I find interesting about this is that the amount of gas in storage, estimated a week ago by the U.S. Energy Information Administration, was about 9 percent above the five-year-average for late September. "The robust supply figures are just a part of our overall strong supply story," said Greg Vesey, vice chairman of NGSA and president of Chevron Natural Gas, referring to the number of wells that have been drilled (fracking) but their production held back. "Natural gas supply can now respond quite swiftly to changes in demand. There are numerous completed wells in shale areas that are not yet producing natural gas but can be quickly accessed and flowing gas when the market calls for more supply."
So I'm confused. We have "robust supply" and wells that can be "quickly accessed" and "flowing gas" when demand calls for it. So why are the gas prices going up again? Because it's colder? Sounds fishy to me.
What about you? Do you heat with gas? What do you think of this report?