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North American Energy Prices Scoping Out Seats in the Nosebleed Section

Discussion in 'Issues Around the World' started by Coot, Jan 2, 2003.

  1. Coot

    Coot Passed Away January 7, 2010

    There is a looming Natural Gas Crisis that will be rearing its ugly head very soon. EnergyBusinessWatch will be releasing a rather bleak report next week detailing the impending hit that will last for the next 5-7 years.

    Some of it is already being evidenced with record withdrawals from storage in the first week of December, pushing prices into the $5/MMBTU range. Predictions of a colder than average next 30 days will yield further record withdrawals and push prices as high as $8/MMBTU.

    Predictions of summer storage injections of natural gas for next year aren't looking all that good either with estimates that injection will be down 20%. The bulk of injection is generally accomplished by contract on the part of large NG consumers, but with depressed gas prices over the last year, it wasn't an attractive option.

    What's driving this shortage isn't foul play, but a market disparity that evolved over the last couple of years...to wit, dwindling supplies of conventional sources of gas and increased demand as gas prices stayed at $4/MMBTU. Not much incentive there for developing new sources.

    With this upward surge in gas prices, many parts of the country will see an accompanying rise in electricity prices.

    Now would be a good time to look for ways to conserve and use what you need to more efficiently.
     
  2. -Ken

    -Ken Guest

    Coot,

    This is the kind of news, which sends shock waves through both
    the private and the business sector. Individuals cannot absorb
    these type of increases as is demonstrated by people here who
    are having trouble getting by currently.

    Business on the other hand will have real problems.
    We can look forward to layoffs, shutdowns and plant closings.
    I think we can expect the Republican Congress with the help of
    our energy conscious president to straighten this problem out or
    they may find out what the view looks like in the unemployment line.

    Now, I just need someone to explain why this is all Bill Clinton's fault.
     
  3. jamming

    jamming Banned

    Most of this can be traced in part to the problems in the Venezuela Marketplace, when 15% of your imported oil energy goes cranky, people start depending on other resources eventually causing shortages there.
     
  4. Sunriser13

    Sunriser13 Knee Deep in Paradise

    This is insane! A few years ago, when another major increase made our monthly gas bill literally more than the mortgage payment, we allowed it to be cut off. This is a house that was not kept overly warm, with the thermostat set on 60 to 62 degrees. It took us nearly a year to pay that bill - then the furnace didn't work anymore once we had service restored. Now that we're looking at a second mortgage to get a new roof and furnace, this type of news breaks my heart.

    There is no way in Hell that we will be able to afford to heat our home - it's that simple. We might as well get used to the kerosene heaters being a permanent fixture...
     
  5. Coot

    Coot Passed Away January 7, 2010

    Actually, I think most businesses will weather this by passing along the associated costs...provided their business model is sound to begin with. It's the average Joe consumer that is gonna take this in the shorts, as Sun has pointed out. Not a good thing at all in that respect.

    As to making this Clinton's fault, give me some time to work on that ;)
     

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