Natural Gas Market in U.S. and risks involved


By: Ankit --

03 August, 2012

Natural Gas Market in U.S. and risks involved

Natural gas prices are just above half of what was the forecasted value for 2012-13. Production has gone up largely in all parts of US largely because of spread of hydraulic fracturing. The US economy is having surplus amount of natural gas and because of this and other conditions the prices of natural gas is below USD 2 per thousand cubic feet. The prevailing lower prices of natural gas may hit the US economy and it may reduce the states revenue by USD 125 million in 2012. Natural gas is widely used as an important energy source in many applications including generating electricity, providing power to industry, as fuel for vehicles and as a chemical feedstock in the manufacture of products such as plastics and other commercially important organic chemicals. The lower natural gas prices is the result of shale gas boom and it has resulted in 10% reduction in electricity costs nationally, which leads to lower prices for many consumer products. Lower gas prices also boost the international competitiveness of domestic manufacturers, resulting in industrial production being 2.9% higher by 2017 and 4.7% higher by 2035.


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