US residential natural gas prices rose in 2014 for the first time since 2008, increasing 6% over prior year to the surprise of many homeowners expecting the low pricing to continue with the boom in domestic production.
The reality is an industry struggling to keep up with increasing demand from colder weather and conversion from large coal power plants to natural gas supply. And this is unlikely to be the end of higher prices. Further investment to expand domestic infrastructure and the future potential to export LPG overseas at much higher prices will be the drivers here. Nevertheless, natural gas is still cheaper than electricity when compared according to heat content (BTU’s).
Hawaii pays almost $5 per therm, almost 5x more than the US average price of $1.06, while North Dakota pays 83 cents per them, some 30% less than the average.
In 2014 most states paid more for natural gas, with large increases of 20-30%+ in the 8 states of NE (21%), MI (22%), CO (23%), AZ & NH (24%), NC & WI (29%) and IL (34%).
With GasSavvy-DBTM, Savenia rates the costs and environmental impacts of products that use or are impacted by natural gas for each zip code, so buyers can compare and make more informed purchase decisions.