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Questions About Natural
Gas...
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Question:
What is the outlook for heating fuel prices for 2009 and 2010?
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According to EIA’s forecast released on November 10, 2009, with the exception of electricity, average annual prices for residential heating fuels are projected to be lower in 2009 and 2010 than in 2008.
U.S. Average Heating Fuel Prices 1
| Fuel |
Actual
2008 |
Forecast |
Per Unit |
| 2009 |
2010 |
| Natural Gas |
$13.67 |
$12.18 |
$12.20 |
1000 cubic feet |
| $1.33 |
$1.18 |
$1.19 |
Therm2 |
| Heating Oil |
$3.38 |
$2.54 |
$2.87 |
Gallon |
| Electricity |
¢11.36 |
¢11.61 |
¢11.51 |
Kilowatt-hour |
| Propane |
$2.51 |
$2.17 |
$2.16 |
Gallon |
1Retail prices including taxes.
2Therm = 100,000 Btu; 1,029 Btu per cubic foot.
Source: Short Term Energy Outlook, November 10, 2009. |
EIA’s most recent, short term forecast for fuel/energy prices.
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How do I compare heating fuels?
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Historical and forecasted winter heating fuel prices and expenditures
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| Last updated: November 10, 2009 |
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Question: How much can I expect to pay for heating this winter?
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U.S. households are projected to spend an average of $977 per household for heating this winter (October through March), a decrease of about 6% over last winter. Households heating with fuel oil are projected to spend 4% more than last winter for heating.
The forecast (as of November 10, 2009) for average winter heating expenditures and the percent change over last winter, for households heating with:
- Natural gas — $792 per household, 11% decrease
- Heating oil — $1,940 per household, 4% increase
- Propane — $1,743 per household, 11% decrease
- Electricity — $946 per household, 1% decrease
Projected heating costs this winter — residential heating fuel prices by region (PDF) |
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| Last updated: November 10, 2009 |
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Question:
What are the major factors affecting natural gas prices?
Natural gas prices are mainly a function of market supply and demand. Because there are limited short term alternatives to natural gas as a heating fuel and as a fuel for electricity generators during peak demand periods, changes in supply or demand over a short period may result in large price changes. Prices themselves often act to balance supply and demand.
Factors on the supply side that affect prices include natural gas production, net imports, and underground storage levels. Increases in supply tend to pull prices down, while decreases in supply tend to push prices up. Increases in prices tend to encourage production and imports and sales from storage inventories, and declining prices tend to have the opposite effects.
Factors on the demand side include economic conditions, winter and summer weather, and petroleum prices. (Petroleum fuels may be an economical substitute for natural gas for manufacturers, power generators, and large building owners.) Higher demand tends to lead to higher prices, while lower demand can lead to lower prices. Increases and decreases in prices tend to reduce or increase demand. |
For a detailed discussion, see:
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| Last updated: November 17, 2009 |
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Question:
Which States consume and produce the most natural gas?
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| In 2007, the following four States consumed the most natural gas:
1. Texas … 3.5 Tcf (Trillion Cubic Feet)
2. California … 2.4 Tcf
3. Louisiana … 1.3 Tcf
4. New York … 1.2 Tcf |
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| U.S.-marketed production of natural gas in 2007 was 20.0 trillion cubic feet (Tcf). The top producing States are: |
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Texas … 6.1 Tcf |
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Wyoming … 1.9
Tcf |
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Oklahoma …1.7
Tcf |
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New Mexico…1.5 Tcf |
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Louisiana …1.4 Tcf |
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Colorado …1.2 Tcf |
In addition, there was 2.8 Tcf of production from the Federal Offshore Gulf of Mexico.
Natural gas consumption by State
Top
Natural Gas Producing States |
| Last updated: April 10, 2009 |
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Question:
Where are the historical spot prices for natural gas?
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| EIA does not collect daily spot price information, but instead relies on a private vendor. EIA publishes daily spot prices for the Henry Hub, Transco Zone 6 NY, Chicago, and an average for selected California locations on a weekly basis and these can be found in the Natural Gas Weekly Update (NGWU). A time series of the daily spot price data for these locations and all others in the Lower 48 States are available from the data vendor, Intelligence Press, Inc. EIA also publishes historical monthly average Henry Hub spot prices in its Short Term Energy Outlook Custom Table Builder. |
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Last reviewed: November 17, 2009 |
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Question:
What percentage of homes in the U.S. use natural gas for
heating?
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Question:
How much natural gas is consumed (used) in the U.S. (total and by end use)?
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Question:
What is the average cost of natural gas used for electric
power generation?
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In 2008, the average price of natural gas used for electric power generation was $9.41 per Thousand Cubic Feet, a $2.10 increase from $7.31 per Thousand Cubic Feet in 2007. |
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Annual natural gas prices (electric power industry price at the bottom) |
| Last updated: May 5, 2009 |
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Question:
What is the volume of natural gas reserves in the U.S. and
worldwide? Is there enough to meet future needs?
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As of January 1, 2009 the United States had about 238 trillion cubic feet (Tcf) of proved, dry natural gas reserves. Proved world reserves are about 6,254 Tcf (Source: Oil and Gas Journal).
Yes, there should be sufficient reserves to meet expected demand well into the future based on EIA's latest estimates of U.S. and total world natural gas consumption from 2006 through 2030, nearly 574 Tcf and 3,274 Tcf, respectively.
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U.S.
Natural Gas Reserves Summary
World
Crude Oil and Natural Gas Reserves |
| Last updated: June 2, 2009 |
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Question:
Where can I find international prices for natural gas?
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Question:
How does EIA calculate the year-ago and 5- year averages in the Natural Gas Weekly Storage Report?
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Question:
What is the total working gas capacity in underground natural gas storage?
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There are several ways that total underground working gas capacity may be measured.
The Energy Information Administration (EIA) estimates that as of the end of April 2009, the aggregate peak working gas capacity for U.S. underground natural gas storage was 3.889 trillion cubic feet (Tcf).
Working gas design capacity, an alternative, less conservative indicator of gas storage capacity, was 4.313 Tcf as of the end of April 2009.
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Estimates of Maximum Underground Working Gas Storage Capacity in the United States, 2009 Update (PDF) |
| Last updated: September 1, 2009 |
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Question:
How can I choose my natural gas supplier in my State?
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Residential consumers in some States have the opportunity
to choose their supplier for the natural gas itself.
Suppliers are either the local distribution company
or approved gas marketers. Regardless of supplier,
the local distribution company continues to provide
local transportation and distribution services. |
| Learn More: To find out more about States that
have "customer choice"
programs, see Natural
Gas Residential Choice Programs. |
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Last reviewed: May 22, 2009 |
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Question:
Can I obtain a list of companies involved in the natural
gas industry, such as utilities, pipeline companies, and
storage operators?
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| Yes. EIA collects and publishes a list of natural
gas underground storage operators by State. EIA
also collects and publishes information on natural
gas investor-owned local distribution companies (LDC),
municipally-owned LDC, and pipeline companies, which
can be downloaded from the EIA-176
Query System. |
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Last reviewed: May 22, 2009 |
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Question:
What greenhouse gas emissions are associated with natural
gas in the U.S.?
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Methane, carbon dioxide, nitrous oxide, and water vapor are the major greenhouse gases associated with the production, transmission, processing, storage, distribution, and use of natural gas. Emissions of these gases associated with natural gas, excluding water vapor, were about 20% of total U.S. greenhouse gas emissions in 2007 (in carbon dioxide equivalent). EIA does not estimate volumes of water vapor produced from natural gas combustion because this contribution to global atmospheric water vapor is relatively insignificant.
Methane, the main component of natural gas, is released directly to the atmosphere when it leaks from natural gas wells and pipelines and processing and storage facilities. These methane emissions in 2007 were the source of about 25% of total U.S. methane emissions, but only 2.7% of total U.S. greenhouse gas emissions.
Carbon dioxide (CO2), nitrous oxide (N2O), and water vapor are produced when natural gas is burned. Some CO2 is also released when it is removed from natural gas. Carbon dioxide emissions associated with natural gas in 2007 were about 21% of total U.S. CO2 emissions and 17% of total U.S. greenhouse gas emissions (excluding water vapor).
Emissions of N2O from natural gas combustion were less than one percent of total U.S. N2O emissions and a very small share of total greenhouse gas emissions.
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Emissions of Greenhouse Gases in the United States 2007 |
| Last updated: January 8, 2009 |
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