Hurricane Affects Gas Prices
"Natural gas prices are always volatile," says Allen Powers, director of gas operations for Walton EMC Natural Gas. "Prices are high right now, but we hope to see lower prices during the winter."
What's causing this rise in gas prices? Recently, Hurricane Ivan had a huge impact on wholesale prices for oil and natural gas. Many off shore platforms received extensive damage, causing several to shut down production.
Any change in the weather or the economy can immediately impact the wholesale price of oil and natural gas. Oil is currently trading at more than $50 a barrel. In 2002, the wholesale price of natural gas was $3 per 1,000 cubic feet and doubled by 2003. Now, natural gas is priced at $6.85 per 1,000 cubic feet.
But prices are expected to moderate as repairs are made to these damaged off shore platforms.
"Despite the fluctuations in the natural gas market, Walton EMC Natural Gas has consistently provided its customers with lower prices than other Georgia natural gas marketers," Powers says. "We will continue offering lower prices to our customers and maintain dependable service that our customers want."
Are you undecided whether you should lock in on a 12-month fixed contract? Review all your options before deciding. If you're not comfortable with the current 12-month fixed price, you may consider waiting until prices are more favorable to lock in to a fixed contract.
To maintain control over your winter energy bills, consume energy efficiently around your home and workplace. Find more information on reducing your energy bill in this issue's "Reduce Your Winter Energy Bill" article.