Tuesday, December 10, 2013

Key Fact: Natural Gas Prices Rise 33% From $2.70/mcf To $3.68/mcf In 2013

The age of natural gas price volatility is not dead. Just consider price movements in the last 12 months.

Natural gas prices hit rock bottom in April 2012, when they actually were below $2 for a thousand cubic feet for a short time. For all of 2012, natural gas averaged an extremely low $2.70.

In 2013, natural gas prices are up a big percentage--36%--but from their low 2012 levels. Gas prices this year have averaged $4, a low level when compared to that existed from 2000 to 2011.

The higher 2013 natural gas pricing has meant a significant decline in the use of natural gas to make electricity, a modest rebound in the amount of coal-fired generation, and higher heating bills for many homeowners. EIA projects that natural gas heating bills will average across America $80 more this winter.

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