| Energy experts across the world share the | | | | |
| belief that natural gas is most likely to | | | | The wholesale price of natural gas in the US |
| displace gasoline in the future, since | | | | during the 1990s was about $2 per thousand |
| natural gas is a cleaner and a more efficient | | | | cubic feet (Mcf). This price, according to |
| fuel than gasoline. Moreover, with oil | | | | the U.S. Energy Information Administration, |
| supplies getting smaller with each passing | | | | is predicted to reach $9 per Mcf during the |
| day, natural gas would perhaps be the only | | | | current 2005-2006 winter seasons. |
| option left for meeting all energy needs. Not | | | | |
| surprising, natural gas today is experiencing | | | | Natural gas prices seem to be affected the |
| rising popularity in the US, Asia and Europe. | | | | most by weather conditions. This sensitivity |
| Another crucial factor that is driving the | | | | to weather is evident during winters, when |
| popularity of natural gas is the concern that | | | | people tend to use more gas for generating |
| oil supplies are getting exhausted very | | | | heat. During summers there is an increased |
| fast.simple supply and demand model dictates | | | | demand for cooling, which translates to a |
| natural gas prices. As supplies become scarce | | | | higher demand for electricity to power |
| and demand picks up, the price of natural gas | | | | air-conditioning units. |
| increases. Consequently, natural gas price | | | | |
| treads an extremely tight balance between | | | | Analysts who have observed the trends in |
| supply and demand in its endeavor to meet | | | | natural gas prices in recent years are of the |
| increasing demand from homeowners, | | | | opinion that natural gas as a fuel option is |
| businesses, factories, schools and | | | | a disaster waiting to happen. The analysis is |
| power-generation plants. Today, natural gas | | | | not without reason. It is now clear, from |
| meets about one-fourth of the total energy | | | | recent happenings that a few months of |
| needs of the US, and is considered the | | | | inclement weather can result in severe |
| backbone of the manufacturing, steel, glass, | | | | shortages and skyrocketing prices. And worst, |
| chemicals, automobiles, food and industrial | | | | there is little supply side solution. |
| sectors. | | | | |