N
atural gas prices are staying low this winter due to the unseasonably warm temperatures. About half the homes in the United States are heated with natural gas.
The U.S. Energy Information Administration (EIA) estimates households heating primarily with natural gas will spend $95 less (13 percent) this winter than last. The average price of natural gas for the 2011-12 heating season is estimated at $10.10 per mcf, down about 3 percent from last year.
In addition to weather-related demand, some of the other factors affecting natural gas bills include
:
Supplies. Natural gas inventories (primarily in tanks and underground storage) are at record levels due to the warm weather this winter. Inventories at the beginning of March were estimated at 2.44 trillion cubic feet, which is about 41 percent above the same time last year. Increased natural gas production activity in the U.S. has also contributed to swelling supplies.
Economic Activity. When the United States economy is growing, the need increases for energy, particularly petroleum products and natural gas. Consumption of natural gas by the industrial and electric power generation sectors is increasing because of environmental and cost benefits
.