You may know what gas is. You also know that gas is expensive. But what is natural gas, exactly? Well, without natural gas, your home would not be the same. “Gas fuels about 50% of America’s homes, accounting for about 21% of total natural gas consumed” (Source: EIA) worldwide. Natural gas is short for natural hydrocarbon gas, which is made up of methane, carbon dioxide, nitrogen, and hydrogen sulfide. Natural gas is used for many things in your home, including:
- Generating electricity
- Transportation
- Fertilizer
- Plastic, paint, etc. production
- Heating
Without natural gas, your home may not have heat and electricity, depending on where you live and what your method of electricity production is. It is often used to produce plastics, paints, and fertilizers. This is why we are so dependent on natural gas, how much is left, and, more importantly, the price.
Natural Gas Prices
The price you pay for gas is directly affected by the methods used to extract the gas, as well as transportation fees. The price you pay is affected mainly by the following factors:
- Oil prices
- Economy
- Volume of gas available
- Volume of gas in production
Your natural gas supplier will consider these factors and calculate your price accordingly. The general rule of thumb is that the more gas available to the company, the lower the prices; however, oil prices are a huge factor of natural gas prices. Oil prices have similar pricing circumstances. This means that natural gas is also directly affected by the availability and abundance of oil supplies. Natural gas is currently around $0.55 and rising for Maryland consumers. As the amount of natural gas available for use has declined, our prices have risen.
We recommend switching to the lowest price of gas in your area to ensure you have the lowest cost on your monthly energy bill. Compare gas prices now and switch to the natural gas supplier of your choice. Contact us if you have any questions or concerns.