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Recent reports however suggest that virtually all of this northern gas will be used in to extract oil from the tar sands in Northern Alberta.

Prices are not expected to come down until new major gas pipelines are built connecting new gas fields in Alaska and the Canadian Northwest Territories.

Many large users have developed this dual fuel capability.

As the price of crude oil increases, some industries switch to natural gas.

Any new electricity capacity brought on line right now is generated by natural gas, rather than oil, coal, water or nuclear.

More natural gas is being used for electricity generation.Production from many older gas wells is declining quite rapidly.Increasing economic activity, growth, new businesses and new homes increase gas use.Natural gas demand in North America is increasing at about 3 % per year whereas supply is increasing at about 1%.Long Term - Economic activity, demand/supply balance and the price of oil. Gas storage levels coming out of the fall are higher than average.What is it going to be? We can't really say. However, if this winter is colder than normal, the consumers can expect double digit percentage increases. If this winter is warmer than normal and the US economy continues at it's current pace, the US Dept of Energy does some predictions. Short Term - Weather, the US economy and gas storage levels. Go to the Price Charts What Drives Prices ? Recent articles are surfacing that infer the glory days of shale will soon be over. #4 - Shale gas deposits are starting to become depleted. #3 - A continued shift from coal to natural gas as a source of power, for economics and the environment. That will allow producers to get world prices, which are 4-6 times higher than North American prices. LNG import facilities are being converted to LNG export facilities. Are they going up ! No they're not! Yes they are! Maybe it depends on the weather. AND it’s only $25.00 per month.Natural Gas Prices – Historical and Forecast

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