What can we expect natural gas prices in 2010

Texas Natural Gas Powers

According to the U.S. Department of Energy, Texas produces and consumes more electricity than any other state. More than half the energy comes from the Texas natural gas-fired power plants. Texas produces 25% of domestic gas and is the largest producer, storage and delivery via pipeline to all regions of the country. But while Texas has large reserves of low-grade coal, most of what is burned in its coal plants presentedby train from Wyoming and Montana.

So it makes sense for Texas power generators, instead of more on the supply of natural gas in our backyard waiting for the next 10,000 tons of coal out of Wyoming role. It burns cleaner than coal and not behind a large amount of slag and ash to be disposed of properly abandoned.

In the past, natural gas typically found in drilling for oil. Many oil companies in the Middle East often use it to push the oilDeposits in the earth and can burn the gas (so-called "flaring"). This was because there were large local demand for natural gas is still a way to safely carry it to markets overseas, which would.

In Texas, the practice was quite different. natural gas and oil are two commodities that have contributed to Texas. natural gas pipelines extending in all directions from Texas and has long been used in the U.S. for heating, lighting and power generation. So it is littleWonder that in this country, its price has long opposed oil, a commodity in a very volatile market, where prices are often shaped by events related in the world. For this reason, generating more business for them, such as coal, nuclear, wind and paid for. Why is the most expensive and so hard on the price of natural gas destined to leave its current price.

As the wave broke

During 2007 and 2008, prices of crude oil and natural gas have increased due to aThe increased flow of speculative investments. This led to the development of resources and innovation in the technology of natural gas reserves of gas to the market. Including:

• The growth in liquefied natural gas (LNG) is projected to increase trade by 6.7 percent annually through 2020. new low-cost fleet built ships and refineries expanded the field worldwide. LNG exports are interested now 15 countries and 17 importing countries, including the United States.
• Qatar has announced the goal of developing bothits North Field gas reserve-production (about 54 billion cubic feet in 1995 to 2,700,000,000,000 cubic feet in 2008) and the ability of gas-to-liquids. Qatar is now the world's largest exporter of LNG.
• developments in horizontal drilling techniques and rock fracture with high-pressure water to offer low cost of some large natural gas deposits trapped in roofing slate. These include the Marcellus Shale and the Barnett Shale beds in Texas (mostly in Ft Worth.) -which is estimated at 26 billion cubic meters of natural gas operation and production of 2 billion cubic feet per day.

In July 2008, the oil / gas price wave. Gasoline has risen to more than $ 4.00 per gallon and natural gas prices of $ 13.69 per billion BTU (MMBtu). The course costs Texas exploded.

Inundated with high fuel prices cut consumers across America travel and energy use. In the autumn of 2008 the economy was so strong that responsibleCompany laid off workers or closed. They continued to natural gas to heat buildings and power requirements for their machines stopped. This has lowered the price of oil, gasoline and natural gas. But in the case of natural gas, the main developments in the LNG and natural gas shale huge amount of natural gas from the earth. Ready to use, it has been lying idle in pipes, tanks and ships at sea. With a lot of supply but not demand, the price has droppedfurther.

One year after a surge in oil prices, DOE says the EIA in its weekly report of natural gas storage of 14 August 2009:

"Working to 3.204 billion cubic meters of natural gas storage was (BCF) as of Friday, August 14, 2009, according to EIA estimates ... stocks were 562 billion cubic feet compared to last year at this time and 513 billion cubic feet above the five years average of 2.691 trillion cubic feet.

In September 2009, natural gas has lost more than 80% of its value and July 2008, had fallen $ 2.409 per MMBtu. Texas Electricity Ratesfell as well.

Wide range + less demand = lower prices

Fuelled by booming U.S. market for natural gas is "decoupled from the price tumble in oil prices. As an analyst Fadel Gheit's words" he [O] On a global good, the gas is a commodity you can have regional a large discrepancy in gas prices by country to country, have from one continent to another, because the lack of adequate transportation -. transportation, gas from where to find it in abundance, removeis necessary. "

As regional product now available in the U.S. natural gas prices are a bit 'insulated against shocks to international issues. New non-shale deposits in all the lower 48 states drilled a stable supply and stable prices. As a result, LNG imports are declining in the United States, after the United Nations to the International Energy Agency chief economist Fatih Birol, to excess global supply of natural gas continues to 2015.

In an interview withBloomberg News, an energy analyst Stephen Schork goods painted this picture of the current offer: "We have gas as we know more than they do in the U.S., we have more gas-based water floating around the oceans of the world that not a house .

When prices began their presentation, many gas companies covered their wells and cut their production. The EIA reported recently in its Short-term Energy Outlook:

Total marketed production is estimated to increase by 3.7 percentin 2009, despite a decrease of 59 percent in Sub-drilling for natural gas in the world from September 2008 to July 2009.

Qatar has also announced that a new development in the North Field reserves for another four years.

For now, the two main drivers of U.S. consumption its winter and its economy. In an early cold snap this winter heating demand increases for much of the country and also caused an increase in prices in the short $ 1. While stalled, the U.S. economy has improved slightly fromSeptember 2008. Due to the slight decrease in productivity and the early cold weather, prices have increased since September 2009 but are still 50% lower than its peak in 2008. EIA statistics for January 27, 2010 Price at Henry Hub in New York ($ 5.42 MMBtu) is 14% compared to same period last year ($ 4.75).

The big news of 2010 is still on the market to a buyer. With storage levels still high in 5 years, increased domestic productionThe skills and slow growth in consumption, prices should not increase dramatically by 2010. EIA projects that the price at the Henry Hub is the place MMBtu with an average of $ 5.25 MMBtu in 2010, $ 3.98 1 27 in more than the average $ 2,009. Remember, this is an average price increase is seasonal occur, especially during the summer cooling Texas, where electricity demand is at its peak.

For consumers of electricity in Texas, this means that energy pricesremain low for the rest of the year, although there are some fluctuations due to seasonal demand, as mentioned above. However, one thing is, the seizure near future: increase the consumption of natural gas, as economic conditions improve. Companies need more people, rather than run back and get machines - and they are all more energy. With the increased consumption, more generators burn natural gas from this need. Gas prices are rising. And soPrice of electricity in Texas.

Long-term solutions for energy consumers in Texas

The best thing for a consumer power in Texas is now the choice of energy. 2012 if you sign for two years (24 months) are now scheduled for recognition, can be captured from power in 2010. The transition between now and spring, when low you could spend hundreds of dollars over the next two years. Why? Because you can take advantage of a long-time limit, the energy in the lockscurrent low energy prices. In the near future, EIA projects that prices will rise in 2011, an average of $ 6.00 MMBtu as existing surplus shrinks in the face of a recovering economy. This is a 13% increase in the price. Especially now, when the energy plan in at.114 cents / kWh to 1500 kWh per month is locked, you pay about $ 171/month. But in 2011 an average increase of 13%, the bill could jump to $ 193.23/month. This is a difference of $ 22.23/month or $ 266.76 for the year.

To maximizeTheir savings for the next two years you must act before mid-April, when the price because it begins the annual increase for the summer cooling costs. A long-term plan that will save more money, go and bounce and energy to plan their visits Protector Price 24th qualified customers will receive tickets to the cinema today, claims the bill, companion air tickets, discounts, and who pays a bill for more!