The recent increase in the cost of natural gas is due to many factors. We ,the consumers, have many questions about the rise in cost. Why is the cost going up now? Is the price going to go down in the future? Is the government acknowledging this rise? Is something currently being done to counteract this price increase?.
The Demand for Natural Gas.
The price of natural gas is set by the interaction of supply and demand of the gas. The demand has risen sharply without an increase in supply causing the price to rise as well. Natural gas has as an environmentally friendly outcome. Many are shifting away from coal or oil to natural gas for electricity. As a result the demand for natural gas is expected to rise by about fifty percent by 2025. This strong growth in demand will be primarily due to rapid growth in demand for electricity generation. The rising popularity of natural gas tells us that we need to increase our supply.
Supplying Natural Gas.
Storing natural gas is not as easy as storing food, clothes, or water. It is difficult for a few reasons. First, there is a delay in time it takes for natural gas to .
The Rising Cost 4.
move from new wells to the marketplace. Second, the .
available reserves to develop are limited because of the location and geological structure of where the gas is resting. Third and final, the demand continues to increase while the life span of the natural gas wells diminishes. These restrictions in gas production interfere with the development. Advances in gas supply technology are critical in the development of the natural gas resource base.
Increasing the Supply .
Developing new technology will help us increase our gas supply. At the moment there is many untapped sources of natural gas. These sources have been off limits because of the fears that drilling will cause harm to the environment. With the modern technology today we should be able to develop an environmentally friendly way to drill.