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.
Natural Gas Markets