1. Markets are Local
Natural gas from American wells is transported through pipelines on land across the US. Unlike oil which must be shipped in from overseas
2. Mild Winters
The mild winter of 2011 resulted in less demand for natural gas to heat homes, leaving suppliers with too much natural gas still in storage.
Fracking has greatly increased the supplies of natural gas in America.
4. Lack of Consumer Demand
Only 19% of natural gas consumption in America is used by end consumers, 31% is used to create electricity in power plants and 28% is used in industrial settings.
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