Consumers, Demand and Prices

 

Consumers, Demand and Prices

Natural gas makes up 25 percent of the energy consumed in the United States (24.64 trillion cubic feet or Tcf in 2010). Thirty-one percent of gas consumed in the U.S. is used for electric power generation, 29 percent in industrial operations, 21 percent in American homes, and 13 percent in commercial settings. The remainder is used in oil and gas production operations, as a pipeline transportation fuel and in road vehicles.

More than half of U.S. homes use natural gas for space heating and home appliances. In this section you will find studies on the residential and commercial natural gas markets, including consumption trends. Topics cover fuel market shares; low-income customer energy burden and assistance; appliance efficiency and emissions comparisons; and price analyses.

Categories: 
Challenges and Opportunities in the Residential Natural Gas Market: Results of the AGA Residential Market Share Survey (Energy Analysis 03/16/2010)

Please direct inquires to:Bruce McDowell, Director Policy Analysis, (202) 824-7131
Full report: Challenges and Opportunities in the Residential Natural Gas Market: Results of the AGA Residential Market Share Survey
Choosing Natural Gas In New Construction: A Survey By The National Association Of Homebuilders (EA 2012-05)

Prior analyses showed that a significant amount of new home construction occurs beyond the reach of gas mains. To gather more information on this topic, AGA engaged the National Association of Home Builders Economics and Housing Policy Group (NAHB) to survey builders
The survey, completed in August of 2012, corroborated the prior findings of AGA and identified the top reasons why builders do or do not choose gas:
EA 2012 Identifying Key Economic Impacts of Recent Increases in U.S. Natural Gas Production (May 22, 2012)

During the past five years, U.S. natural gas supply increased quickly and dramatically as shale gas production increased. Expectations of constrained gas supplies were confounded, and prices reacted accordingly:
wholesale gas prices fell 55 percent in one year; and,
retail prices fell about $4 per MMBtu.
These lower prices were passed directly to natural gas consumers: 
Energy Bill Payment Assistance to Low-Income Households Increases, Need for Help Persists

Energy bill payment assistance to low-income households increased significantly over the past two years. Federal government assistance through the Low Income Home Energy Assistance Program (LIHEAP) reached record levels -- $5.1 billion was allocated for Fiscal Year (FY) 2009 and FY2010, compared to $2.6 billion in FY2008. Also, utility rate assistance programs provided $2.4 billion in rate assistance to these customers in 2009, an increase of 7.5 percent compared to 2007. Last winter, heating bills fell to the lowest levels in two years.
Natural Gas Prices

The term natural gas prices is often used to refer to a number of different types of prices. Some natural gas prices refer to the point in the market where the natural gas is purchased, other prices are based on the timing of delivery and some prices refer to pricing mechanisms. These different prices include but are not limited to wellhead prices, spot prices, futures (NYMEX) prices, citygate prices and residential prices. It's important to be specific about the type of price under discussion and to understand the relationship among the various types.
Residential Natural Gas Market Survey, 2011 Data (December 2012)

This report provides a unique and comprehensive view of the residential natural gas market, including market shares by city, region and the United States overall, a state comparison of energy prices, and a look at LIHEAP and other bill paying assistance programs.
Residential Natural Gas Market Survey, 2012 Data (February 2014)

This report provides a unique and comprehensive view of the residential natural gas market, including market shares by city, region and the United States overall, a state comparison of energy prices, and a look at LIHEAP and other bill paying assistance programs.
The Positive Natural Gas Supply Situation Benefits Consumers - A Look at January 2011 (Energy Analysis 03/08/2011)

AGA analysis of January 2011 bills of northern residential natural gas consumers reflected a cost savings of $100 on average relative to similar bills from the supply-constrained January of 2006.
 
A Comparison of Energy Use, Operating Costs, and Carbon Dioxide Emissions of Home Appliances (Energy Analysis 10/20/2009)

Natural gas, electricity, oil, and propane compete in the residential sector in a variety of applications – primarily space heating and water heating. Natural gas,electricity, and propane also compete in cooking and clothes drying applications. Choosing which energy to use has significant implications in terms of efficiency, economics, and the environment. While the ultimate energy choice is made by consumers and builders, this choice is also influenced by government policies.
An Overview of the Competitive Environment for Home Heating Fuels 2000-2010

Discussions around changes in fuel choice for residential consumers often focus on switches from heating oil to natural gas service. The reality is that market share for residential home heating fuels can be influenced in a variety of ways for a variety of reasons.For information, contact: Bruce McDowell, Managing Director, Policy Analysis or Brendan O’Brien, Energy Analyst
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