Posted on 11/08/2016 3:09:41 PM PST by bananaman22
For families using natural gas in their homes, this could be an expensive winter... or a cold one without heat. New England consumes the most liquid natural gas (LNGs) out of anywhere in North America primarily due to high population density and colder climate. Historically, the price of LNG rises in correlation to snow storms. Because of bottlenecks in the pipelines for LNG, supply is limited in the North East and a demand surge can cause a spike in price.
In 2015, there were only 6 million homes that use traditional heating oil in New England, whereas nearly half of households in the United States use natural gas. Towns that don’t run gas pipelines could also have propane delivered. The pipeline bottleneck is unfortunate for New Englanders who use natural gas especially during a time when prices are exceedingly low. Demand for LNGs is at an all time high and low crude oil prices is suppressing the value further to a spot price around $2.70 per mmbtu. Natural gas reliance is only increasing with the continued effort by the United States to shut down coal plants. For natural gas users, locking in at a low price is highly sensible, or simply buying more blankets.
Consolidated Edison, Inc. is a public company that invests significantly in natural gas transmission projects. They believe natural gas prices could rise to as much as $20-25 mmbtu this winter in the North East. Investors should be on the watch to see how the company reacts over the season and how their projects pan out.
(Excerpt) Read more at oilprice.com ...
If natural gas goes to 25 dollars, and I do not think it will, those liberals that do not want fracking in New York may be conservatives next year.
What else is to be expected?
wowie.
pretty scary.
“Necessarily skyrocket.”
It’s about 3 bucks now I think.
It went into the cesspool this afternoon, down to $2.62
Hows it affect Propane
At last! Some good news for Oklahoma! Yea!
New Englanders don’t have to spend money for cooling in the summer, so they should have a bunch of money saved up in anticipation of winter.
Just an idea.
Given the pipeline constraints imposed by all the NIMBY anti-fracker douchebags that inhabit Massachusetts it definitely might happen for a short time in the spot market with a deep cold snap.
There is ONE LNG terminal in Everett MA and even there the storage tanks and pipelines combined don’t have enough capacity to fulfill all demand in the area when the temperature stays sub zero.
Heat with wood sucka’s! :-)
Wanna bet?
Spot price local to New England region due to pipeline bottleneck.
You know what you call $25 natural gas price? A good start!
If you like your natural gas prices you can keep your natural gas prices.
I'm more worried about my taxes.
ML/NJ
Given the abundance of natural gas in Texas and a pipline infrasture I will keep my house any damn temperature I want in the winter, spring, summer and fall.
Those in the Northeast will pay the consequences for their actions. I do have compassion for those in the Northeast that are not insane left wing liberals. They pay a price due to the actions of those that live and vote in their individual states.
We welcome them in our state of Texas if they are conservative. The others can freeze in the dark!!!
The real hell of it is that New York sits on vast natural gas reserves in Marcellus Shale. They refuse to utilize their gift. I have no sympathy.
Why not use solar or wind power. I hear those are great alternatives.
Ha, never. This country has so much gas in the ground.
Greatly good sir. Propane is also used for heating. It is a product of natural gas production. It heat value in that market is determined by the price of natural gas. If natural gas prices climb in the Northeast propane prices will also climb in unison. Propane prices her in Texas will still be cheap cheap cheap.
God I love Texas!
PS
You have a hell of a lot of coal in West Virginia, Pennsylvania, Ohio, Virginia and parts of New York. It is cheap and efficient but Obama took care of that. It is no longer cheap.
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