American Gas - November 2012 - (Page 5)

industrynews PeoPle Trends evenTs let it snow Best value Fuel for Consumers This Winter? natural Gas Natural gas customers caN expect their winter heating bills to stay relatively low this year, even though fuel use is likely to rise as temperatures across the country are expected to be colder than last year. This prediction underlines the continuing affordability of natural gas as a fuel choice and the stability of natural gas markets in the United States made possible by its domestic abundance. At a press conference on October 4, AGA Vice President of Policy Analysis Chris McGill and AGA Director of Policy Analysis Bruce McDowell gave their outlook for what consumer natural gas bills may look like during this winter heating season. While bills are expected to stay among the lowest they have been in the past decade, total costs may increase by about 7 percent for the average customer compared to last year. This increase, however, is not due to a change in the price of natural gas itself— which will actually be about 2 percent lower—but rather to greater use. Last winter saw the lowest consumer natural gas bills in the past 10 years, due to what McDowell equates to hitting the “trifecta of factors leading to customer benefits.” Customer savings were caused by the low wellhead price of natural gas and its abundant availability, both of which were compounded by an unusually mild winter. “Across much of the country,” said McGill, “last winter was the winter that wasn’t.” This year, McGill and McDowell predict a more typical season. Colder weather may influence consumer costs as much as 14 percent, however, slightly lower total natural gas prices and anticipated conservation will work to reduce the overall impact to about 7 percent higher, meaning that people will likely need to use more fuel to heat their homes and businesses. “Weather is one of the biggest influences on natural gas utility bills for homes,” explained McDowell. Customers are also directly contributing to keeping their heating bills down. Compared to 1970, the average natural gas use per home has decreased by 40 percent. This is due to conservation made possible by energy efficiency upgrades to homes and businesses, weather proofing, more judicious use, and investing in more efficient appliances. Customers’ conservation efforts are expected to help offset the impact of colder weather on gas bills by about 4 percent this winter. All of this points to a new paradigm in natural gas markets. “This is not your grandfather’s natural gas industry,” McGill informed the audience. An estimated 100-year domestic supply, a 2.4 million-mile pipeline distribution system that is the most extensive in the world, and improved technology to access the nation’s vast reserves means that natural gas markets in the United States should remain stable for years to come. The bottom line? “This is a good time to be a natural gas customer,” said McDowell. “If you’re thinking about converting your home or business to natural gas, this is the time to do it.” november 2012 AmericAn GAs 5

Table of Contents for the Digital Edition of American Gas - November 2012

American Gas - November 2012
Table of Contents
President’s Message
Industry News
Ask AGA
Search Engine
In the Know
Part One: Pipelines
Company Profiles
Places to Be
Jobline
Advertisers Index
Noteworthies
Marketplace
Facts on Gas

American Gas - November 2012