Questions About Natural
Gas...
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Learn More
About Natural Gas! |
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Question:
What are the major factors affecting natural gas prices?
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Numerous underlying factors
affect natural gas prices. Depending on the factor-for
example, production, imports, demand, oil prices,
and natural gas inventories -- each can apply
either upward pressure () or downward pressure ()
or neutral pressure on prices (). |
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Increasing Production
- Total U.S. marketed production of natural gas increased 5.9% in 2008, and is projected to increase an additional 0.7% in 2009. |
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Declining Imports - Net imports of natural gas declined by 22.8% in 2008, and is projected to decline by 5.8% in 2009. |
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Lower Demand - Total natural gas consumption increased 0.7 % in 2008, but is projected to decline by 1.0% in 2009. |
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Lower Oil Prices - Some large-volume customers (primarily industrial consumers and electricity generators) can switch between natural gas and oil, depending on the prices of each. Because of this interrelation between fuel markets, when oil prices fall, the shift in demand from natural gas to oil pushes prices downward. |
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Above Average Inventories - As of January 2, 2009, natural gas in storage was 2,830 billion cubic feet (Bcf), which was 3.2% above the 5-year average for that time of year. |
For a detailed discussion on residential
natural gas prices, see:
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Last updated:January 14, 2009 |
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Question:
Which States consume and produce the most natural gas?
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In 2006, the following four States consumed the most natural gas:
1. Texas … 3.4 Tcf (Trillion Cubic Feet)
2. California … 2.3 Tcf
3. Louisiana … 1.2 Tcf
4. New York … 1.1 Tcf |
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U.S.-marketed production of natural gas in 2006 was 19.4 trillion cubic feet (Tcf). The top producing States are: |
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Texas … 5.5 Tcf |
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Wyoming … 1.8
Tcf |
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Oklahoma …1.7
Tcf |
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New Mexico…1.6 Tcf |
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Louisiana …1.4 Tcf |
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Colorado …1.2 Tcf |
In addition, there was 2.9 Tcf of production from the Federal Offshore Gulf of Mexico.
Natural gas consumption by State
Top
Natural Gas Producing States |
Last updated: April 15, 2008 |
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Question:
Where are the historical spot prices for natural gas?
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EIA does not collect daily spot price information, but instead relies on a private vendor. EIA publishes daily spot prices for the Henry Hub, Transco Zone 6 NY, Chicago, and an average for selected California locations on a weekly basis and these can be found in the Natural Gas Weekly Update (NGWU). A time series of the daily spot price data for these locations and all others in the Lower 48 States are available from the data vendor, Intelligence Press, Inc. EIA also publishes historical monthly average Henry Hub spot prices in its Short Term Energy Outlook query system. |
Last reviewed: April 17, 2008 |
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Question:
What percentage of homes in the U.S. use natural gas for
heating?
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Question:
How much natural gas is consumed (used) in the U.S. (total and by end use)?
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Question:
What is the average cost of natural gas used for electric
power generation?
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In 2007, the average price of natural gas used for electric power generation was $7.31 per Thousand Cubic Feet, a 20-cent increase from $7.11 per Thousand Cubic Feet in 2006. |
Annual natural gas prices (electric power industry price at the bottom) |
Last updated: January 28, 2009 |
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Question:
What is the volume of natural gas reserves in the U.S. and
worldwide? Is there enough to meet future needs?
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The United States had about 238 trillion cubic feet (Tcf) of proved, dry natural gas reserves in 2007. Proved world reserves are about 6,186 Tcf (Source: Oil and Gas Journal, December 2007 estimate).
Yes, there should be sufficient reserves to meet expected demand well into the future based on EIA's latest estimates of U.S. and total world natural gas consumption from 2006 through 2030, nearly 580 Tcf and 3,382 Tcf, respectively.
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U.S.
Natural Gas Reserves Summary World
Crude Oil and Natural Gas Reserves |
Last updated: February 13, 2009 |
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Question:
Where can I find international prices for natural gas?
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Question:
How does EIA calculate the year-ago and 5- year averages in the Natural Gas Weekly Storage Report?
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Question:
What is the total underground natural gas storage capacity?
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There are several ways that total underground working gas capacity may be measured. The Energy Information Administration (EIA) estimated that in August 2007 that, after adjustment for operational considerations that hinder the attainment of full storage at all fields simultaneously, a likely practical estimate for maximum industry-wide working gas capacity is roughly 3.7 Tcf. However, based on design capacity estimates, U.S. working gas capacity was 4.10 Tcf as of the end of July 2007.
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Estimates
of Maximum Underground Working Gas Storage Capacity
in the United States |
Last updated: April 15, 2008 |
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Question:
How can I choose my natural gas supplier in my State?
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Residential consumers in some States have the opportunity
to choose their supplier for the natural gas itself.
Suppliers are either the local distribution company
or approved gas marketers. Regardless of supplier,
the local distribution company continues to provide
local transportation and distribution services. |
Learn More: To find out more about States that
have "customer choice"
programs, see Natural
Gas Residential Choice Programs. |
Last reviewed: April 17, 2008 |
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Question:
Can I obtain a list of companies involved in the natural
gas industry, such as utilities, pipeline companies, and
storage operators?
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Yes. EIA collects and publishes a list of natural
gas underground storage operators by State. EIA
also collects and publishes information on natural
gas investor-owned local distribution companies (LDC),
municipally-owned LDC, and pipeline companies, which
can be downloaded from the EIA-176
Query System. |
Last reviewed: April 17, 2008 |
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Question:
What greenhouse gas emissions are associated with natural
gas in the U.S.?
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Methane, carbon dioxide, nitrous oxide, and water vapor are the major greenhouse gases associated with the production, transmission, processing, storage, distribution, and use of natural gas. Emissions of these gases associated with natural gas, excluding water vapor, were about 20% of total U.S. greenhouse gas emissions in 2007 (in carbon dioxide equivalent). EIA does not estimate volumes of water vapor produced from natural gas combustion because this contribution to global atmospheric water vapor is relatively insignificant.
Methane, the main component of natural gas, is released directly to the atmosphere when it leaks from natural gas wells and pipelines and processing and storage facilities. These methane emissions in 2007 were the source of about 25% of total U.S. methane emissions, but only 2.7% of total U.S. greenhouse gas emissions.
Carbon dioxide (CO2), nitrous oxide (N2O), and water vapor are produced when natural gas is burned. Some CO2 is also released when it is removed from natural gas. Carbon dioxide emissions associated with natural gas in 2007 were about 21% of total U.S. CO2 emissions and 17% of total U.S. greenhouse gas emissions (excluding water vapor).
Emissions of N2O from natural gas combustion were less than one percent of total U.S. N2O emissions and a very small share of total greenhouse gas emissions.
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Emissions of Greenhouse Gases in the United States 2007 |
Last updated: January 8, 2009 |
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