Natural Gas Prices Rise Rapidly as Temps Fall

USA Today ^ | 1/14/2003 | Barbara Hagenbaugh

[ex-Texan]

WASHINGTON

[ex-Texan]

Not to worry ..... Light a fire in the fireplace, bundle up, wear layers of clothes, use extra blankets and consider using electric blankets.

[Mo1]

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[Blood of Tyrants]

It IS a problem. There once was a thriving business for natural gas fired turbine-generators to allow businesses to offset the price of energy by generating their own. That market has disappeared because of the uncertainty (higher) natural gas prices.

[newgeezer]

That market has disappeared because of the uncertainty (higher) natural gas prices.

Thank the environuts for making sure new power generating stations can't use coal or nuclear energy. So, they turned to gas.

Simple supply and demand economics.

[jriemer]

I'm shocked! The Law of Supply and Demand is at work in America, again!

Didn't the Democrats attempt to repeal this law before the Senate changed hands?

No-one seems to bitch when their gas rates are pennies on the therm in the summer. If you're still really indignant, pull out your December A/C bill - it's startling... [/sarcasm]

jriemer

[MrB]

Most people wouldn't get it unless explained in really simple terms.

The bottomline is that the higher prices encourage conservation (reduce demand). We could "cap" the prices, but only if these people didn't want any natural gas to heat with at all. (Price caps = shortage, every time)

[Dog Gone]

Most Americans want cheap natural gas, but they don't want oil companies drilling for it anywhere near them. Nor do they want to have ports built to import liquified natural gas.

The brainwashing by the liberals and enviromental activists is almost complete.

[jriemer]

Most people wouldn't get it unless explained in really simple terms.

The bottomline is that the higher prices encourage conservation (reduce demand). We could "cap" the prices, but only if these people didn't want any natural gas to heat with at all. (Price caps = shortage, every time)

True. I am very wary of any one who wants to tinker with the mechanics of supply and demand whether it is "for the greater good" or their own personal gain. We have drifted far afield from the days of Adam Smith's Invisible Hand where a true, unfettered market can exist. A open and free market provides the incentive to supply more goods to the economy when more are needed and less when there is a glut without a hint of centralized planning - a fact not lost upon our socialist and communist brethren.

jriemer

[Blood of Tyrants]

Actually, the market I was in was ideal for natural gas turbines. The turbine turned a generator and made up to 10 Megawatts of electricity (generally for factory or college campus usage) while the hot exhaust gas was used to heat water in a boiler to make steam for process usage or heating.

[jriemer]

I agree. If you have a large enough physical plant and the correct fit of needs, co-generation (steam + electricity) is one of the most effective methods around. It's the Mechanical engineering equivalent of a 2 for 1 and all the costs are contained in-house.

Several midwestern universities are going this route to generate power and steam heat for dormitories. When you combine this with long-term fixed-rate gas contracts, the cost becomes even more attractive.

jriemer

[Wright is right!]

Once again, the Law Of Supply And Demand is NEWS to USA Toady.(correct spelling) This is "dog-bites-man."

What WOULD be news is if the price of gas FELL along with dropping temperatures - ("Watch for falling prices...")

By the way, did you know that there's a city in China named Usa? (its English translation) The Chinese have several factories there making exports, and they stamp their goods "Made In USA." Or they DID until Commerce complained and made them stop. But it's no joke. "Made In USA" was NOT the same as "Made In The U.S.A."

Michael

[Blood of Tyrants]

Unforetunately, few gas companies are willing to sign long term rates; at least they are not willing to sign them at decent rates.

However, one place is coming up with a novel approach. Near their facility, there is an old dump. (Dumps are GREAT sources of N.G.) So they are planning on putting in the equipment for collecting the N.G. and piping it directly to the turbine and avoiding dealing with the gas companies.

[BOBTHENAILER]

Most Americans want cheap natural gas, but they don't want oil companies drilling for it anywhere near them. Nor do they want to have ports built to import liquified natural gas.

Truer words were never spoken. Check out the below for proof:

http://www.freerepublic.com/focus/news/821812/posts

[MD_Willington_1976]

Thats funny Avista utilities keeps telling us that the price of Natural gas in Washington State has gone down...

http://www.avistautilities.com/prices/coinchart.asp

As for a close source of natural gas & oil, there is an under-sea gas bed off the coast of Vancouver Island BC, Just north of Washington State.

http://cbc.ca/stories/2002/09/09/methane020909

[Damocles]

Not to worry ..... Light a fire in the fireplace, bundle up, wear layers of clothes, use extra blankets and consider using electric blankets.

But I have a GAS fireplace! The original owner of my house was the president of the local gas company so everything (including the air conditioner) is natural gas. My latest bill was up 50% from the previous period.

And yes, it's cold here in Michigan!

[ex-Texan]

Exactly correct .... which I was posting common sense suggestions to reduce energy usage and reliance on natural gas. These are proven time-tested methods. Used them myself when I lived in Indiana and was forced to use the antiquinted heating oil burning system in the house we purchased. Why waste good money on natural gas -- when you can buy really great sweaters?

In South Bend, Indiana, it is very cold and very snowy and remains very cold from December through March. We still were getting snow in April and the permafrost was deep and did not thaw out until late in the season. You could almost heat cheering when the bulbs broke through the frozen earth!

[ex-Texan]

Have some fun with it! Rip it out. Rip it all out, wrap it up, and deliver the appartus to him. Hold a press conference in front of the gas company Hdq. Tell him what you think about people who waste natural gas .... Sound off if you feel the need.

When you remove the gas lit fire, install an alternative. There are really great wood pellet burners that look great when they are burning. Wood pellets are cheaper than gas. OTOH, just use good old logs. I love to burn logs and love to chop logs for a really great fire. Have fun!