Lower Natural Gas Bills Expected This Winter

[sabra]

Source: Reuters

U.S. consumers are expected to pay lower natural gas bills this winter compared with last year due to above-normal gas supplies and cheaper energy prices, the American Gas Association said on Monday.

"Plentiful domestic natural gas supplies and lower wellhead prices will drive bills down this winter and provide relief for natural gas customers struggling in a trouble economy," the AGA said in its annual winter outlook.

Natural gas inventories are forecast to hit record levels on Nov. 1, which is the start of the U.S. heating season.

Utilities built up most of those stocks with gas that was much cheaper that last year.

Gas prices have been lower this year thanks to the U.S. recession, which reduced gas demand in 2009 from the industrial sector by 6.4 percent through September. At the same time domestic gas production has been strong, boosting available supplies that helped keep prices down.

Read more: http://www.cnbc.com/id/33176138

[Demeter]

1. Not to Mention That All That Speculation That Wasn't Going On

has been bled out of the prices of gas, oil and electricity....

[Upfront]

2. Great

Sounds good.

[mod mom]

3. I just switched NG providers after researching & my bill went from $31 to $21 w same usage.

Not sure if every state allows folks to choose a supply, but in Ohio we did. I checked the PUCO website and found my provider was WAY to high. I am going w columbia Gas which is not only the lowest, but doesn't require a lock in time frame. I had researched that NG was expected to be cheaper & figured even lower rates might be in the future.

[Vidar]

4. I hope that's true. Maybe I can pay the taxes before they take my house.

[ellie]

5. I dread the thought of winter

We had a cold summer here and it wasn't hot enough to wipe out the memory of that week last winter when the temperature didn't even climb to O°F. My heating bill is so outrageous even though I seal everything up with plastic.

[demigoddess]

6. not to mention that people will probably be cutting back to save money,

and they are saying this to encourage normal usage so the companies don't face a hardship.

[Abacus]

7. Maybe someone should tell the futures markets...

The mean price for December, January, February last year was ~$5.10 mmbtu. Today, we're at $4.99 and likely headed for $6.50 by the thick of winter.