Natural Gas Price Trends: Up 40% Pacific, 70% Midwest
Energy Trends: Due to Gulf supply shortages, natural gas prices are expected to rise 40% over the next few months on the West coast, and up to 70% in the Midwest. Watch out for the Winter when demands rise.
A week after the department of energy predicted a 71 percent increase in natural gas prices in the Midwest, Energy Secretary Samuel Bodman said Tuesday, "There are concerns about the supply of natural gas."
As well there should be. Gulf area natural gas production is down 35-40%, and oil production is down by over 50%.
Natural gas is a non-renewable energy source, and is used largely throughout the West coast to heat homes That trend has caught on in other parts of the United States. Because of this growing demand, . Combined with high prices for gasoline, the price spike will hit consumers hard. Expected to profit from this are natural gas producers in the region, and there is an increasing interest in natural gas futures.
There is much uncertainty in the recovery times for the Gulf of Mexico region, so predictions are difficult. This uncertainty makes the market volatile.
For more detailed market trends, see: Energy Trends from the Energy Information Administration and PG&E Gas Bills to Soar.
