Thanks Fracking: Americans Saving Billions On Natural Gas

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This chart from Mark Perry shows spending by US consumers on natural gas since 1999:

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From Perry:

According to data from the Department of Energy, the US price of natural gas delivered to residential consumers in November 2012 was $9.97 per 1,000 cubic feet (most recent month available). Adjusted for inflation, that’s the lowest residential price of natural gas for the month of November in 13 years, since 1999, which further supports the BLS data on falling real natural gas prices. Likewise, the $8.01 price per 1,000 cubic feet paid by commercial consumers in November was the lowest inflation-adjusted price for November since 1999.

Just to put that into context, here’s natural gas price changes versus gasoline:

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I was speaking with a reader recently about when the United States might begin to switch away from running transportation on gasoline and diesel to running on natural gas. There’s been a push for years to make it happen, but I don’t think the price points in the market place have ever quite reached the tipping point where a switch from natural gas to gasoline makes sense for your average consumer. That may be changing, specifically in commercial applications. FedEx, for instance, is weighing switching their delivery vans to natural gas, and container ships burning natural gas are already being built.

Natural gas prices are at rock-bottom lows now, but those low prices are also going to inspire changes in the way natural gas is consumed in our economy. As we’re using it for more things, that increased demand will drive prices back up and will create impetus for more production.

That transition will probably mean two things for private citizens. Either our gasoline prices will get cheaper as big consumers of fuel – commercial truckers, etc. – move away from the fuel, or it might begin to make sense for individuals to start buying cars that run on natural gas.

However it shakes out, this is just another of the many profound ways the energy revolution set off by innovations like hydraulic fracturing is touching our lives.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • mickey_moussaoui

    time to switch to a nat gas car

    • mikemc1970

      You can recoup the cost for the private conversion in about 10K miles, but the leftists have been working very hard to keep factory converted CNG vehicles out of the hands of most consumers for a while now.

  • two_amber_lamps

    Prices on Natural Gas are coming down just in time for crushing inflation and tax increases brought about by veiled cap and trade leftist nonsense designed to stifle the economy and punish the US for being to successful.

    He’s made no effort to hide his HATE of the coal industry… what’s the next-most prolific fossil fuel burned to produce electricity?

    NG!

    Tell em’ Bamster! Tell em how much you want to punish the nation….

    If not by Congressional Act then by Executive Fiat!

    http://www.youtube.com/watch?v=HlTxGHn4sH4

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