Natural gas has a couple of major roles in energy use and prices. It is used by many, perhaps the majority of, Americans to heat their homes. And it is used to generate electricity, often serving as the backup to unreliable, expensive “renewable” energy. The insaniacs are trying to get rid of natural gas use. The US has a ton of it, we should be producing flat out and exporting it to Europe in particular. But instead it is impossible for people to get new pipeline permits or drill in many places. So you pay more, a lot more. See that chart, look at the current price and trend–it is going to cost you a fortune to heat your home this winter. Or you can burn Dem campaign literature.
- These charts illustrate the monthly US average retail natural gas prices from January 2001 to July 2022. Average prices for the Residential, Commercial, Industrial, and Power Generation sectors are displayed, as well as the year over year percent change. Government policies can have a large effect on natural gas prices, by making it more difficult or more expensive to produce or transport gas. For example, see the Center for American Experiment here: https://www.
americanexperiment.org/biden- nominees-make-it-harder-to- build-natural-gas-pipelines- with-predictably-bad- consequences/, or Forbes here: https://www.forbes.com/sites/ davidblackmon/2021/04/05/ bidens-infrastructure-bill- signals-a-death-sentence-for- natural-gas/?sh=6f90257a5891. These are only two of many examples of articles on Biden energy policies hindering natural gas production and leading to increases in prices.
- The U.S. Energy Information Administration (EIA) publishes average retail natural gas prices since 1981. We are plotting prices since 2001 for simplicity, since prices for natural gas for electric power production are only available since 2002. The raw data is available here: https://www.eia.gov/dnav/ng/
- Fig. 1 displays the average US monthly retail price per Mcf of natural gas. The unit Mcf is defined as 1000 cubic feet of natural gas at standard conditions of 60 degrees F and 14.7 psia, which effectively makes this a mass unit of measure. These values are plotted from the EIA data without modification. Residential natural gas pricing has a very strong annual cycle, generally peaking August each year. The price for gas used for electrical power generation is the lowest of the four rates displayed, but has been increasing rapidly since late 2020. The extreme spike in February 2021 is the due to the winter storm in Texas and Oklahoma. Although current prices are not at historic highs, the increase in recent prices for gas used for power generation will have a large impact on electricity prices. As we published here https://healthy-skeptic.com/
2022/10/05/electricity-in- minnesota/, natural gas power plants have made up a larger and larger portion of total electrical production in recent years as coal power plants are retired. This increase in natural gas prices will absolutely be passed through to residential, commercial, and industrial electricity consumers.
- Fig. 2 displays the rate of change in the average monthly price, year over year. We are calculating this change from the monthly price data displayed in Fig. 1. The February 2021 winter storm spike distorts the vertical scale, but the annual price change of natural gas for electric power generation has been 40% or higher each month since February 2021, except for February 2022 when the extreme price spike of February 2021 reversed.