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Frequently Asked Questions – Natural Gas
Questions About Natural Gas...
How much can residential consumers expect to pay for natural gas this year?
What are the major factors affecting natural gas prices?
What is the average cost of natural gas used for electric power generation?
Where can I find international prices for natural gas?
What percentage of homes in the U.S. uses natural gas for heating?
How much natural gas is consumed (used) in the U.S. (total and by end use)?
Which four States consume the most natural gas?
What are Mcf, Btu, and therms? How do I convert prices in Mcf to Btu's and therms?
Where do I find the EIA's methodology for calculating the year-ago and 5- year averages in the Natural Gas Weekly Storage Report?
What is the volume of natural gas reserves in the U.S. and worldwide? Is there enough to meet future needs?
What greenhouse gas emissions are associated with natural gas in the U.S.?
Which States produce the most natural gas?
What is the total underground natural gas storage capacity?
How can I choose my natural gas supplier in my State?
Can I obtain a list of companies involved in the natural gas industry, such as utilities, pipeline companies, and storage operators?
Where are the historical spot prices for natural gas?
 
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 Learn More About Natural Gas!

Visit our Natural Gas Basics 101 page to learn about natural gas.

Textbook titled Natural Gas Basics 101
 
 
Question: How much can residential consumers expect to pay for natural gas this year?

U.S. residential natural gas prices are projected to average $13.83 per thousand cubic feet (Mcf) this year, 6.4 percent higher than last year’s price of $13.00 per Mcf.

Learn More: Review projected residential natural gas prices in EIA's Short Term Energy Outlook.

Last updated:  April 15, 2008
 
Question: What are the major factors affecting natural gas prices?

Numerous underlying factors affect natural gas prices. Depending on the factor-for example, production, imports, demand, oil prices, and natural gas inventories -- each can apply either upward pressure (blue arrow pointing up) or downward pressure (blue arrow pointing down) or neutral pressure on prices (blue arrow pointing left and right).

blue arrow pointing down Increasing Production - Total U.S. marketed production of  natural gas is projected to increase 2.9 percent in 2008.
blue arrow pointing left and right Declining Imports - Net imports of natural gas are projected to decline 6.8 percent in 2008.
blue arrow pointing left and right Slow Demand Growth - Total natural gas consumption is projected to increase by 1 percent in 2008.
blue arrow pointing up High Oil Prices -  Some large-volume customers (primarily industrial consumers and electricity generators) can switch between natural gas and oil, depending on the prices of each. Because of this interrelation between fuel markets, when oil prices rise, the shift in demand to natural gas drives prices upward.
blue arrow pointing left and right High Natural Gas Inventories - As of April 4, 2008, natural gas in storage was 1,234 billion cubic feet (Bcf), which was just below the 1,257 (Bcf)  5-year average for that time of year.
Learn More: For a detailed discussion on residential natural gas prices, see Residential Natural Gas Prices: What Consumers Should Know and our latest Short-Term Energy Outlook.
Last updated: April 15, 2008
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Question: What is the average cost of natural gas used for electric power generation?

In 2006, the average annual price of natural gas used for electric power generation was $7.11 per Mcf (thousand cubic feet).

Learn More: Annual natural gas prices

Last updated: April 14, 2008
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Question: Where can I find international prices for natural gas?

EIA provides international natural gas prices for selected countries by sector (electric generation, household, industry).

Learn More: International natural gas prices

Last reviewed: April 17, 2008

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Question: What percentage of homes in the U.S. use natural gas for heating?

In 2005, nearly 52 percent of all households (residential sector) used natural gas as their primary heating fuel, accounting for about 22 percent of total natural gas consumed in the United States.

Learn More: Type of Heating in Occupied Housing Units, Selected Year, 1950-2005 - Annual Energy Review and Annual natural gas consumption by end use 

Last updated: April 14, 2008
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Question: How much natural gas is consumed (used) in the U.S. (total and by end use)?

In 2006, the U.S. consumed nearly 22 trillion cubic feet (Tcf) of natural gas by the following seven natural gas end users:

Industrial …6.6 Tcf (30.0%)
Electric power generation … 6.2 Tcf (28.4%)
Residential… 4.4 Tcf (20.4%)
Commercial… 2.9 Tcf (13.3 %)
Lease and plant fuel consumption …1.1 Tcf (5.1%)
Pipeline and distribution …573.7 Bcf (2.6%)
Vehicle Fuel… 24.2 Bcf (1%)
Learn More: Natural gas consumption by end use
Last updated: September 5, 2007
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Question: Which four States consume the most natural gas?

1. Texas … 3.4 Tcf (Trillion Cubic Feet)
2. California … 2.3 Tcf
3. Louisiana … 1.2 Tcf
4. New York … 1.1 Tcf

Learn More: Natural gas consumption by State

Last updated:April 15, 2008
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Question: What are Mcf, Btu, and therms? How do I convert prices in Mcf to Btu's and therms?
Btu - One British thermal unit (Btu) is the heat required to raise the temperature of one pound of water by one degree Fahrenheit.
Therm - One therm equals 100,000 Btu.
Mcf - Mcf is the volume of one thousand cubic feet of natural gas and equals 1.031 million Btu on average.
Natural gas can be measured based on its volume (cubic feet or Mcf) or based on its heat content (British thermal units or therms). Prices can be converted from one basis to another by using the relative ratio of the corresponding heat or volume measure. For example, to convert prices in dollars per thousand cubic feet (Mcf) to dollars per million Btu (MMBtu), divide the Mcf price by the thermal conversion factor.
Learn More: For further information on natural gas unit conversion, see the Natural Gas Conversion Calculator
Last reviewed: April 17, 2008
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Question: Where do I find the EIA's methodology for calculating the year-ago and 5- year averages in the Natural Gas Weekly Storage Report?

Calculations for the year-ago and 5-year averages are explained in Appendix A of the Methodology section of the Storage Report found at: http://tonto.eia.doe.gov/oog/info/ngs/methodology.html#5year

Last reviewed: April 18, 2008
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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?

The United States had about 211 trillion cubic feet (Tcf) of proved, dry natural gas reserves in 2006. Proved world reserves are about 6,183 Tcf (Source: Oil and Gas Journal, December 2006 estimate).

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 580 Tcf and 3,382 Tcf, respectively.

Learn More: U.S. Natural Gas Reserves Summary and World Crude Oil and Natural Gas Reserves

Last updated: April 16, 2008
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Question: What greenhouse gas emissions are associated with natural gas in the U.S.?

Natural gas is primarily methane, which is a major greenhouse gas. Methane is emitted directly to the atmosphere from sources such as leaks in natural gas wells, coal mines, and pipelines. It is also emitted from landfills, sewage treatment facilities, livestock operations, and industrial processes. Other major greenhouse gases, carbon dioxide, nitrous oxides and water vapor, are produced when natural gas is burned for heating and electric power generation. Direct methane emissions and carbon dioxide emissions from natural gas combustion in 2006 were about 25 percent of total U.S. emissions of greenhouse gases (in carbon dioxide equivalent).

Learn More: Emissions of Greenhouse Gases in the United States 2006

Last updated: April 11, 2008
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Question: Which States produce the most natural gas?

U.S.-marketed production of natural gas in 2006 was 19.4 trillion cubic feet (Tcf). The top producing States are:

Texas … 5.5 Tcf
Wyoming … 1.8 Tcf
Oklahoma …1.7 Tcf
New Mexico…1.6 Tcf
Louisiana …1.4 Tcf
Colorado …1.2 Tcf

In addition, there was 2.9 Tcf of production from the Federal Offshore Gulf of Mexico.

Learn More: Top Natural Gas Producing States

Last updated: April 16, 2008
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Question: What is the total underground natural gas storage capacity?

There are several ways that total underground working gas capacity may be measured. The Energy Information Administration (EIA) estimated that inAugust  2007 that, after adjustment for operational considerations that hinder the attainment of full storage at all fields simultaneously, a likely practical estimate for maximum industry-wide working gas capacity is roughly 3.7 Tcf. However, based on design capacity estimates, U.S. working gas capacity was 4.10 Tcf as of the end of July 2007.

Learn More: Estimates of Maximum Underground Working Gas Storage Capacity in the United States

Last updated: April 15, 2008
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Question: How can I choose my natural gas supplier in my State?

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.

Last reviewed: April 17, 2008

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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?
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.

Last reviewed: April 17, 2008

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Question: Where are the historical spot prices for natural gas?
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 query system.

Last reviewed: April 17, 2008

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