Posted on 11/08/2016 3:09:41 PM PST by bananaman22
For families using natural gas in their homes, this could be an expensive winter... or a cold one without heat. New England consumes the most liquid natural gas (LNGs) out of anywhere in North America primarily due to high population density and colder climate. Historically, the price of LNG rises in correlation to snow storms. Because of bottlenecks in the pipelines for LNG, supply is limited in the North East and a demand surge can cause a spike in price.
In 2015, there were only 6 million homes that use traditional heating oil in New England, whereas nearly half of households in the United States use natural gas. Towns that don’t run gas pipelines could also have propane delivered. The pipeline bottleneck is unfortunate for New Englanders who use natural gas especially during a time when prices are exceedingly low. Demand for LNGs is at an all time high and low crude oil prices is suppressing the value further to a spot price around $2.70 per mmbtu. Natural gas reliance is only increasing with the continued effort by the United States to shut down coal plants. For natural gas users, locking in at a low price is highly sensible, or simply buying more blankets.
Consolidated Edison, Inc. is a public company that invests significantly in natural gas transmission projects. They believe natural gas prices could rise to as much as $20-25 mmbtu this winter in the North East. Investors should be on the watch to see how the company reacts over the season and how their projects pan out.
(Excerpt) Read more at oilprice.com ...
Don’t know about propane cost in the NE, but we recently had our 100 gal tank topped up and they charged us $5.44/gal. Fortunately we use it only for our gas fireplace just a few times a year. But if the price here in NE FL is indicative of everywhere else, it may be an uncomfortable winter in snow country.
September propane here was $1.59.
Dont forget the envirowackies who have fought new pipelines and the regulators who have refused price schema that would incent natural gas storage.
I live and work literally in the center of the Marcellus and Utica plays. Work went in the dumper two years ago because local oversupply depressed prices to the point of unprofitability. We can’t export it until the pipeline infrastructure is built out.
The blue nosed monkeys in New York and New England can freeze in the dark because their irrational hatred and opposition to pipelines and fracking are preventing them from accessing this amazing resource at rock bottom prices. To them I say, go take a flying leap at a wind mill.
#21 HOLY SHIATE!
I prebought mine last August. Locked in at 1.24 gal. all winter.
Mid Michigan.
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