One Simple Reason Why Natural Gas is so Affordable
Natural gas is the least-expensive heating or energy fuel on the market today. That means lower costs for natural gas users and more money in consumers’ pockets.
The impact this low cost has on the economy and how it ripples out can get complicated, but the reason why natural gas is so inexpensive is actually quite simple: there’s a lot of natural gas in the U.S.
“Our nation has more natural gas today than ever before in the history of our country,” said AGA Chairman and President and CEO of NW Natural David Anderson at a recent meeting of the CFA Society of New York (CFANY), a leading forum for the investment community that’s nearly a century old. “This abundance has kept prices affordable and stable for a decade now, and we expect that to continue.”
Not only does this place natural gas utilities in a good position for potential investors (a high-quality product, with lots of supply, easily delivered, inexpensive to the consumer and all the while still profitable) but it puts them in a unique spot to help Americans through one of the most challenging periods in our nation’s history. “At a time when so many are struggling in an unprecedented way, affordability is more important than ever,” Anderson said, noting that “today’s gas bill is less than it was 15 years ago.”
“I’m not sure you can say that about a lot of things we live with day in and day out,” he said.
In his remarks to CFANY Anderson also outlined his vision for the future of natural gas utilities and for AGA, the organization that represents them. While the past year has brought a number of challenges, natural gas utilities have continued to deliver and will be there for all Americans, Anderson said, noting that the innovation that is a hallmark of the industry will continue to help our nation achieve its energy goals.
“This is the time to think big and think differently,” he said. “I am certain that our industry will continue to thrive and demonstrate its commitment to affordability, the environment, innovation and safety. I know we are up to the challenge, because I’ve seen this industry innovate time and time again.”
Anderson used an example from his own company NW Natural. “We started manufacturing gas in the 1860s and transitioned to conventional gas as we know it today in the mid-1950s and now in the 2020s we’re incorporating renewable natural gas into our supply portfolio and working on hydrogen,” he said. “What goes through our pipes may change, but our priorities remain unchanged and are as strong as ever.”