Word: gas
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Dates: during 2000-2009
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...delve deeper, let's examine why gas prices have deflated so much: natural gas prices and oil prices are no longer bedfellows in our present economy. As crude oil has skyrocketed from about $30 per bbl. in December 2008 to more than $70, natural gas has plummeted from nearly $6 per million BTU to under $3, recently hitting a seven-year low. To put these numbers in perspective, this makes oil more than four times as expensive as natural gas to produce the same amount of energy, according to the U.S. government's Energy Information Administration (EIA). (Read "Clean Energy...
Long story short, this year we are going to have more natural gas than we need - or potentially even store...
That's no reason to party. Here's why: unlike the global crude-oil market, the market for natural gas is incredibly localized. The U.S. produces nearly 90% of what it consumes, and the rest is imported from Canada or from overseas - the latter amounting to only about 2.5% of U.S. consumption. Thus, a glut of domestic gas doesn't really affect imports...
...quickly expand gas consumption. At this stage, anyone who can use natural gas instead of crude oil is already burning gas, as the price goes lower still. There is really only one other form of energy that natural gas will replace - coal. Yes, in some geographic areas, it is currently cheaper to use natural gas than coal. Shocking, right...
...demand for gas, despite its low price, stays relatively low. Then layer on the effects of the recession: gas-intensive industrial production is down 12.8% since this time last year, according to Barclays Capital bank estimates. On top of that, there's weather: this has been a cool summer in much of the U.S., so less natural gas has been burned for electricity to power air-conditioning than in recent years. (Read "America's Untapped Energy Resource: Boosting Efficiency...