If you’re searching for a natural gas provider then you’re likely considering natural gas prices and may be curious about what makes the fuel such an affordable option. Natural gas prices have been cut in half over the last six years, and prices are anticipated to remain comparatively low for years to come. According to energy industry data and information specialist, IHS, and their 2014 industry study, natural gas prices are likely to stay low at least for the next 20 years. For those that are currently using natural gas this is good news. Low forecasted gas rates also provide an incentive to make the switch to natural gas for those that are considering conversion.

Daily Gas Production

There are a handful of factors that contribute to the low prices. The most significant factor is America’s abundant supply, combined with very efficient extraction techniques. The nation’s existing, and forecasted, supply of natural gas will not only meet our current needs, but also the anticipated growth in demand. Demand is expected to increase into the future, particularly on the commercial side in the industrial and electrical power sectors. Although natural gas production comes from a variety of locations, the Marcellus shale deposit is currently one of the most significant contributors. The Marcellus Formation is a unit of marine sedimentary rock found in eastern North America.

Average Wholesale

Another factor affecting our nation’s supply of natural gas revolves around current export laws. Government regulations place export restrictions on natural gas, which contributes to the abundant supply within the U.S. These regulations are driven by a variety of political and industrial influences. Those that support regulation believe, in part, that exporting would lead to higher prices. It can be argued, however, that the supply is so abundant that prices could remain low, even with more export.

Consumer demand also plays a role in cost. At the moment consumers only account for about 20% of the natural gas consumption in the U.S. Power plants and industrial use account for the majority. This is in contrast to the high consumer demand for oil. Although consumers may eventually use more in the near future, the abundant supply is forecasted to meet this demand.

Forecasting natural gas use and cost is part of Realgy’s daily business. We can help position your company to benefit from changes in natural gas pricing now and in the future.

Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual savings. Additional information: www.realgyenergyservices.com