Oil and Natural Gas
Oil and natural gas are at the center of America's hunger
for fuel to power homes, industries and transportation. As
the cost of oil has risen the demand for natural gas has also
risen but the price has been kept in check by the simple mechanism
of increasing the production of natural gas.
Natural Gas and Electricity
Compare the price of natural gas versus oil costs and you
will see that despite an increase in demand the price of natural
gas has risen at a much slower rate than that of oil. We are
yet to see the seasonal fluctuation in natural gas prices
that normally occurs. Even though more and more natural gas
is being brought to market the price has remained almost constant.
We are also seeing a move towards combining natural gas and
electricity in some areas and the production of electricity
through the use of generators powered by natural gas is only
likely to increase. The use of natural gas to generate electricity
is something that has already taken off in other parts of
the world and it's something that will happen here too.
So as the price of oil increases and the reserves decrease
we are sure to see a greater dependency on natural gas to
power our homes, our industries and our transport too.