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Natural Gas Prices-What Consumers Should Know

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  • Natural Gas Prices-What Consumers Should Know

    As consumers we tend to understand the workings of Natural Gas less than we do the the other sources of energy that effect our lives. This from the EIA (go to EIA.gov site)

    We know all about oil and what causes the ever upward swing in foreign oil prices.

    Electricity is old hat. But natural gas, the energy source we tie our wagons to once we choose NGV's as a way of transport is far less well understood. For most people the level of understanding seldom goes beyond realizing that when winter sets in, heating bills go up. This text document may help you understand the ups and downs of your household heating bill... or the price of your cars fuel.

    Natural gas is about 85% domestically produced, that means no middle east oil producer can hold you hostage at the pump when you put CNG in your vehicles tank. This makes pricing more stable and increases our national security, thereby decreasing our dependence on foreign oil.

    The price of natural gas has two main parts (all cost components include a number of taxes):
    Commodity costs — the cost to the natural gas itself.
    Transmission and distribution costs — the cost of move the natural gas by pipeline from where it is produced to the customer’s local gas company, and to bring the natural gas from the local gas company to your house.
    Click to enlarge »
    Data for this figure »
    More data »

    Since the winter of 2001-2002, the natural gas commodity cost (the cost at the wellhead) has constituted more than half of the residential price. This relative cost pattern differs from earlier years in which the commodity cost was consistently less than half the total residential price. The large commodity cost share has resulted from increasingly high prices for natural gas during most of this decade.
    The increasing price trend reflects market conditions that have included:
    • Colder-than-normal weather for long periods during some heating seasons
    • Increasing use of natural gas for electric generation
    • Production disruptions from hurricane activity in the Gulf of Mexico
    • Fluctuating net import levels
    • Record-high crude oil prices over much of the last two years
    Average Natural Gas Prices in the United States

    Between 1999 and 2008, the national annual average residential natural gas price more than doubled, from $6.69 per thousand cubic feet (Mcf) to $13.68 per Mcf. However, prices moved slightly lower in 2009 to $11.97 per Mcf. The national average price of natural gas is only part of the story, as the prices in individual States can differ greatly. These differences are often related to a market’s proximity to the producing areas, the number of pipelines in the State, average consumption per residence receiving service, and the transportation charges associated with them, as well as State regulations and degree of competition.



    For example, based on 2009 data, residential consumers along the Atlantic Coast tend to pay the most, with prices ranging from $14 to more than $20 per Mcf. By contrast, States in the rest of the country benefit from either indigenous production or the presence of major trunk lines traversing the State. The availability of relatively abundant supplies results in prices between $9 and $15 per Mcf.
    Last edited by Curtis; 05-22-2011, 12:02 AM.
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  • #2
    Re: Natural Gas Prices-What Consumers Should Know

    I have been paying 2.349 since 9/26, and it was 2.249 prior, meanwhile during this time span gas has gone from over $4.00 to under $3.00

    Almost making driving a new CNG not even worth it, considering the extra time, distance you have to travel, out of your way just to get to one of the limited stations there are.

    I get gas at the San Fern station off of S.F. and the 118.

    This is sad considering it is just a pump, and that's it.

    At least at a gas station you can purchase coffee, and it is convenient.

    Comment


    • #3
      Re: Natural Gas Prices-What Consumers Should Know

      Originally posted by SimiValley View Post
      I have been paying 2.349 since 9/26, and it was 2.249 prior, meanwhile during this time span gas has gone from over $4.00 to under $3.00

      Almost making driving a new CNG not even worth it, considering the extra time, distance you have to travel, out of your way just to get to one of the limited stations there are.

      I get gas at the San Fern station off of S.F. and the 118.

      This is sad considering it is just a pump, and that's it.

      At least at a gas station you can purchase coffee, and it is convenient.
      Understand that Curtis' attachment was about the pricing of Natural Gas. This is a PART of the cost of CNG at the pump, but unfortunately, the operating costs compared to the volume of sales at a lost of CNG facilities add a considerable price to the top of that natural gas commodity price. Combine that with the 'Private' companies that have geographic monopolies and can charge whatever well sell, with little-to-no competition, and you can see why the prices seem high.

      However, the document is very relevant to a home refueler.
      1997 Factory Crown Victoria w/ extended tanks ~~ Clunkerized!
      2000 Bi-Fuel Expedition --> ~~ Sold ~~ <--

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      • #4
        Re: Natural Gas Prices-What Consumers Should Know

        Hopefully no one will develope amnesia and forget what we just went thrugh with oil prices. To me cng is a long term investment in my financial security. Regardless of how long prices at the pump remain low, be it 6 months... or 2 years, we all know that the time will come when they skyrocket again. It's inevitable. It hapened in the 70's, 80's and recently. Oil has to return to higher prices... and when t does, I'll still be on cng and smiling when I pass the corner gas station. I haven't pulled out of the stock market because it fell either. I still buy a little each month knowing it will eventually go back up again. It always does, and driving ngv's pays dividends in many other ways... environmentally, economically, etc. Don't get me wrong, I'm glad gas is affordable, but it can't stay that way for very long. Many oil companies are selling below their production costs right now. That's not sustainable and will eventually drive the price up, it has to.

        Bottom line... just give me my ngv.
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        • #5
          Re: Natural Gas Prices-What Consumers Should Know

          Let's not forget that while CNG is a great cost alternative ($0.06 / mile vs $0.15 - $0.30 / mile for most sedans), that isn't the real benefit. If the United States were to actually become free of Middle East oil, we would keep $700b per year in the country (more than the entire cost of the Iraq and Afghan wars). That would translate to the kind of domestic economy only seen by countries like Kuwait. CNG is a great step to real energy independence.

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          • #6
            Re: Natural Gas Prices-What Consumers Should Know

            There's just something special about driving your car with the knowledge that you are not giving money to people who hate us.

            Comment


            • #7
              Re: Natural Gas Prices-What Consumers Should Know

              I live in the SF Bay Area where gas prices for regular unleaded have fallen to around $1.65 a gallon. PG&E's price for the month of December was $1.88. I just checked their website, and for the month of January the price has jumped up to $2.15. Like oil, the price for natural gas has been falling, so I would have expected PG&E's prices to be lower, not higher. Not too many people are going to be interested in buying CNG vehicles (and paying a premium to do so) if the price of natural gas is the same or higher than the price of gasoline.

              Comment


              • #8
                Re: Natural Gas Prices-What Consumers Should Know

                Don't worry, OPEC has cut 4.2 million barrels per day in production the past month. Prices will start rising at the gas pump before long. OPEC wants $3 a gallon gas, and oil at $60-$80 a bbl.
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                • #9
                  Re: Natural Gas Prices-What Consumers Should Know

                  What do you will, it already has -- about a nickel yesterday.

                  Merry Christmas to all

                  Larrycng

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                  • #10
                    Re: Natural Gas Prices-What Consumers Should Know

                    NG prices in Utah have been at 80 cents but in yesterdays newspaper is an article that the Public Service Commission has approved to increase the price 188 percent in 2 phases over the next six months. Natural-gas prioces for cars to soar The worst part is that it was a surprize to the Gas company and they did not specify how the additional money is to be spent. What will they do?

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                    • #11
                      Re: Natural Gas Prices-What Consumers Should Know

                      So why bother with CNG. If it is to cost the same as gasoline I am not going to put up with the inconveniences that are associated with CNG. Short leash and mechanics that are afraid of your car. I'll buy my fuel from a terrorist instead.

                      Comment


                      • #12
                        Re: Natural Gas Prices-What Consumers Should Know

                        No offense, but that .txt attachment is a horrible glob of text to try and slog through. This seems to be an updated version:

                        http://www.eia.doe.gov/neic/brochure...ngp/index.html

                        I did notice some text discrepancies between the two versions, but it did say the web version was released in December of 2008. Nevertheless, thanks for the post, I would not have found it by myself.



                        “Innovation is driven by having access to things.” -- Gleb Budman, CEO of backblaze.com

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                        • #13
                          Re: Natural Gas Prices-What Consumers Should Know

                          I just fueled at the Clean Energy site, wow!!!! $1.299 You got to love CE now..Happy Holidays

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                          • #14
                            Re: Natural Gas Prices-What Consumers Should Know

                            Phoenix SkyHarbor CE station is $1.05 Im fueling there instead of my house for now. Home price is around $1.60

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                            • #15
                              Re: Natural Gas Prices-What Consumers Should Know

                              I filled up this morning at the Clean Energy station in Moreno Valley. The price was $1.30 per gallon!!! That is cheaper than the City of Riverside at $1.36.
                              You gotta love private industry running reliable stations at competitive prices!

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