Further Reducing Energy Costs
Future natural gas costs are anticipated to be higher, but demand will grow slower than in prior projections, according to the Energy Info Administration’s latest yearly long term outlook, the ‘Annual Energy Outlook 2006.’ in addition, home consumption of natural gas is projected to fall by six p.c from 2005 levels this year but rise by 7.7 p.c in 2007, the EIA says. Energy conservation would help people cooling bills now and in days to come. To help save energy : * Put curtains on your windows to keep out the sun. * Install a thermostat which will mechanically adjust temperatures. * Turn off lights, appliances and electric clobber while not in use. Do your baking, washing, drying and ironing early in the morning or the evening. * Clean or replace the filter for your air conditioner. Costs tied to natural gas are comprised of 4 main parts : production, transmission, distribution and commodity price as set by the market. When the gas is produced, it is broadcast over long distances by pipeline from the wellhead to a local gas company. Once at the gas company, it is stored and then distributed to local buyers. The cost of natural gas consumed is set by supply, demand and other market conditions. The Gulf of Mexico supplies twenty-five p.c of domestic natural gas that is consumed in the U.S. But eleven p.c of Gulf production is still blocked due to break from Hurricanes Katrina and Rita. Twenty-three % of natural gas goes to usage in the home and twenty-seven % goes to electricity generation. ‘While folk are facing fast-increasing energy costs, speculators recognise that inside these increases exists a greater investment potential,’ asserts Roger L. Cory, president of Mammoth Resource Partners. Vestas