Energy Procurement Blog

We have seen a lot of hype regarding the direction of Natural Gas prices in the United States.  The range of predictions is across the board.  Some believe that lower prices are here to stay awhile, while others are predicting 4-5 dollar gas by the end of the year.  This blog contains only the facts to consider.  It does not offer any conjecture on where the prices are headed - just the facts!

The last time we saw the stock market take a dive like we saw on Monday, August 8th was in October of 2008. Sometimes referred to as the Crash of 2008, it set a record weekly loss of 1,874 points or 18.1% during the week of October 6th.

So we began thinking - how would a downturn in August affect the price of natural gas? Looking back at the crashes of 1929, 1987 and 2008, they share one common element...

The question has been raised many times lately about how the economy especially the latest news about raising the debt ceiling can have on energy prices. This blog will attempt to answer that question as it relates to natural gas and electricity pricing.

Since natural gas prices affect the price of electricity let’s start there. The largest pricing component of natural gas is set by market forces which is the buying and selling of the commodity by market players, based on supply and demand...