Natural Gas

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  • Topic: Natural gas, Natural gas prices, Propane
  • Pages : 5 (1711 words )
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  • Published : October 1, 2012
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Natural Gas
Natural gas is another means of energy source that provides heating and electricity to many individuals. It is a natural mixture of methane, carbon dioxide, nitrogen and hydrogen sulfide. Natural gas was first found back in 1626 when the French found the natives lighting gas seeping in and out of the ground around Lake Erie. When natural gas was first introduced into civilization as a means of energy source it was not efficient nor was it environmentally friendly. It was first in the United States in Baltimore, Maryland in 1816 when it was used to light the street lamps. The first well that was dug for Natural Gas purposes was in 1821 in Fredonia, New York by William Hart. He is known as the “father of natural gas: in America. The Fredonia Gas Light Company was then formed and became the first American natural gas company. Gas was mainly used for lights as it was hard to transport the gas into homes for electricity or cooking. (Naturalgas.org, 2004-2011)

The United States Government first regulated the natural gas industry in 1938. This is when the member of the government believed the natural gas industry to be a “natural monopoly”, due to the possibility of charging unreasonably high prices and rising importance of natural gas to all consumers. This caused the Natural Gas Act to be implemented to protect the consumers and allow the government to regulate and add restrictions on the price that was imposed on consumers. This was found not to be healthy for the natural gas market. They found that imposing less restrictions and regulations was better for the market so in the 1990’s they started allowing for a more competitive market. This decrease in barriers of entry allowed for more natural gas to be discovered and more options to available to the consumers. (Naturalgas.org, 2004-2011) Price

The current price reporting as of June 2012 was $2.54 a dollar. The price of gas has continuously increased and decreased throughout from 1976 the price of gas was $0.64 at the end of the year. It reached its highest in January of 2006 when it was $8.01. Then decreased to $5.70 in January 2007, and then back up to $7.38 in January 2008. Since then the price has continued to drop to where it is now. In the graph below it shows the increase and decrease in the price of natural gas throughout the history of natural gas.

The chart bellows shows the pricing changes throughout the year from 1976 through 2012. U.S. Natural Gas Wellhead Price (Dollars per Thousand Cubic Feet)| |

Year| Jan| Feb| Mar| Apr| May| Jun| Jul| Aug| Sep| Oct| Nov| Dec| 1973| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| 1974| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| |

1975| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| NA| 1976| 0.54| 0.54| 0.54| 0.55| 0.55| 0.58| 0.58| 0.60| 0.60| 0.62| 0.63| 0.64| 1977| 0.67| 0.71| 0.75| 0.77| 0.77| 0.82| 0.83| 0.82| 0.83| 0.84| 0.83| 0.84| 1978| 0.87| 0.88| 0.89| 0.88| 0.91| 0.91| 0.89| 0.91| 0.92| 0.92| 0.93| 0.96| 1979| 1.02| 1.05| 1.10| 1.11| 1.15| 1.17| 1.20| 1.24| 1.24| 1.28| 1.29| 1.31| |

1980| 1.37| 1.42| 1.46| 1.51| 1.56| 1.57| 1.64| 1.64| 1.69| 1.71| 1.76| 1.74| 1981| 1.77| 1.81| 1.86| 1.93| 1.95| 1.95| 2.01| 2.02| 2.08| 2.11| 2.15| 2.16| 1982| 2.23| 2.30| 2.35| 2.40| 2.45| 2.45| 2.47| 2.53| 2.56| 2.60| 2.62| 2.62| 1983| 2.66| 2.66| 2.58| 2.53| 2.53| 2.59| 2.52| 2.58| 2.67| 2.58| 2.60| 2.61| 1984| 2.67| 2.71| 2.67| 2.64| 2.67| 2.70| 2.68| 2.69| 2.62| 2.63| 2.61| 2.57| |

1985| 2.64| 2.71| 2.62| 2.64| 2.53| 2.58| 2.51| 2.47| 2.42| 2.37| 2.36| 2.28| 1986| 2.28| 2.26| 2.16| 2.10| 1.96| 1.85| 1.80| 1.77| 1.78| 1.73| 1.77| 1.76| 1987| 1.74| 1.73| 1.73| 1.69| 1.65| 1.65| 1.66| 1.63| 1.56| 1.57| 1.64| 1.70| 1988| 1.96| 1.84| 1.70| 1.59| 1.52| 1.53| 1.56|...
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