Gas prices for heat on the rise
September 25, 2008
When the cold weather creeps in, using heat sparingly might be a good idea.
Natural gases will soon join the list of other products that have taken price hits.
Prices for natural gas are expected to increase 17 percent in the Midwest from last winter, according to the Energy Information Administration’s (EIA) Web site.
Richard Caragol, Nicor public relations manager, said there are several reasons why this is happening.
“Production, supply, storage and weather are all factors that determine how much it will cost to use natural gas,” he said.
Caragol said demand also plays a big role in natural gas prices.
“October to March is the heating season with a higher demand in usage of natural gas,” he said. “April to September is the cooling season when the demand goes down.”
The rise of oil prices could also be a deciding factor in the rise of prices for natural gas.
Neil Gamson, short-term energy outlook expert for the EIA, finds this to be a possibility.
“Oil prices are higher than last winter. And if oil prices go up, then natural gas prices could go up as well,” he said.
Chuck Bessler, senior psychology major, does not like the increase but understands why it will occur.
“It’s too bad that natural gas has to increase but I understand why it’s happening,” he said. “Money has to be put into this resource and others in order for people to use them.”
With an increase in natural gas prices, Caragol said their Web site has advice for residents who need help managing costs.
“We have been promoting our online energy tool that allows our customers to manage gas costs,” he said.
The tool gives customers an idea of how much natural gas they have used.
“Energy Depot is a tool that allows customers to get a complete report on their usage,” Caragol said.
For more information on managing natural gas costs, visit www.nicor.com.