Natural Gas Prices Rise

October 23, 2009

As reported in Courier Post

NEW YORK — Sparked by a cold snap in the northeast, home heating fuels are getting more expensive even though supplies are well above normal for this time of year.

Heating oil futures spiked with crude oil contracts last week. Retail prices followed, surging an average of 10.2 cents per gallon for residential customers by Monday, according to an Energy Information Administration report released Thursday.

Natural gas prices rose everywhere for retail customers, with hikes of between 31 cents and $1.14 per each million British thermal units in the lower 48 states.

Our Perspective:

Winter is setting in and we are beginning to see Natural gas prices rise based on anticipated demand. Overall, this is still a good time to lock in natural gas prices in the deregulated market.

With prices being at a 3 to 4 year low, locking in your price gives you protection against market fluctuations and produces savings over the lifetime of the contract. Many of our clients are looking at 12 month to 24 month contracts.

Should you go back and look at your natural gas prices in 2008, you will find that you were paying over $12.00 a decatherm ($1.20 a therm). Currently the prices can be found in the high $7 range to low $8 range based on usage and demand. As you can see, this is close to a 30% savings.

Would you like to know more? Leave a comment or email george@hbsadvantage.com

Natural Gas Market

May 30, 2009

Energy Business Reports Logo

Apr 30, 2009

As was the case with other industries that have been deregulated, natural gas deregulation has resulted in competition which helps lower the cost of natural gas and increase customer choices.

Deregulation is the process of lessening the amount of government restrictions an oversight applied to private companies. The natural gas industry has been gradually deregulated over the past ten years.

Before deregulation, utilities charged their customers for all the necessary steps to get the natural gas from the gas well to the customer’s home or business. This included purchasing the natural gas, delivering it to the customer, measuring the customer’s use,providing emergency service, and billing the customer.

One effect of deregulation has been that customers may now choose to purchase only part of the full line of services that are offered by the utility. This ability to choose is called
unbundling. The complete package of services has been unbundled so that a customer can choose to separate the gas purchasing transaction from the delivery — or transport — transaction.

Our Perspective:

Natural Gas prices are the lowest they have been in 3 to 4 years. For companies spending more than $3000 a month we are finding 20% to 30% saving over what they have paid over the past year.

One of our new clients signed up today and will see more that $42,000 savings over the next year.

Like to know more? Feel free to contact us. There are no additional fees, your savings fall to the bottom line.

Email george@hbsadvantage.com  or call 856-857-1230