Natural Gas Prices Fall to Lowest Levels Since 2002
While rising oil and gas prices have captured all of the media attention lately, there’s another energy story about falling prices that has gone largely unreported. According to data released last week by the Department of Energy, natural gas prices for residential consumers fell to a seven-year low in January of $9.80 per 1,000 cubic feet. When adjusted for inflation, American consumers haven’t had cheaper natural gas since December 2002, more than nine years ago (see top chart above, data here). The bottom chart above shows a similar price decline for commercial customers, who paid less for natural gas in January this year (adjusted for inflation) than in any month since November 2002 (data here).
About 25% of energy in the U.S. comes from natural gas, so the falling prices for this energy source should offset some of the rising costs of oil and gas, and also act to offset some of the overall inflationary pressures. Read more here at The Enterprise Blog.