New natural gas mining techniques and a warm winter has helped push the cost of natural gas down, providing relief to customers even as demand for the gas continues to rise.
According to recent reports the cost of natural gas has plummeted by 35 percent over the past year.
Part of the price drop comes from new drilling techniques which have pushed up supply as a rate that is outpacing higher demand.
According to Boston.com:
This winter’s warm weather slowed the growth in demand, however, and created a glut. In the Northeast, December was the fourth warmest in the last 117 years. Winter supplies are 17 percent above their five-year average.
This past week winter-time prices for natural gas dropped 13 percent to $2.67 per 1,000 cubit feet, the lowest winter-time pricing in a decade.
In the meantime analysts now believe natural game prices could level off around $3 for all of 2012 as weather conditions remainingg favorable, however they could drop below 2002 numbers which fell below $2.
Low natural gas pricing is a great thing for the U.S. economy since nearly half of all U.S. households use natural gas for heat and nearly a quarter of U.S. electricity is made from it. Under currently pricing the average family is saving $200 per year.
Lower natural gas pricing also allows certain products to become cheaper to produce, specifically chemicals, plastics and fertilizers.
In the meantime the natural gas market could correct itself in the coming years as more producers have begun to hunt out the more lucrative oil market where prices current sit near $100 per barrel.
Have you been reaping the benefits of lower natural gas prices? In my house the cost has definitely went down.