Fracking Keeps Heating Bills Down
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The cold winter has created a near-record demand for natural gas in the United States, says the Wall Street Journal.
– While the increased demand has raised natural gas prices, the jump in price has not been as extreme as in past cold snaps.
– In December 2000, gas prices doubled in just two and a half months.
– Home heating bills almost doubled that winter from the previous year, from $380 to $624.
The more stable prices are a function of the energy boom in the United States, which, through fracking, has created massive natural gas supplies. With the vast supply, the market has not panicked with concern that stores will be depleted.
As Joe Gregorini, vice president of Peoples Natural Gas, explained, “The available [sic] of the Marcellus and other shale gas has really dampened the effects of weather. This is one of the coldest winters we’ve seen in our service territories in decades, but the available [sic] of natural-gas supplies has insulated customers.”
While some customers will see higher prices, the increase will not at all be the shock that was seen in 2000.
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