People living outside the Marcellus Shale region in places like New York City and New Jersey have the pleasure of reaping the benefits of natural gas while not incurring any of the temporary inconveniences. These areas will never see development yet they continue to delay and stop pipeline expansion into major cities as well as pass bans on the hydraulic fracturing process. New Jersey resident, John Broyles, takes a look at this phenomenon.
After reaching a high of over $13 in June of 2008, natural gas prices closed at $3.16 on the 15th of February. We can credit hydraulic fracturing for low cost and reliable supplies of natural gas. Considering the fact that 27% of all natural gas demand is commercial and industrial, residential customers arenít only seeing lower heating and electricity prices, theyíre also seeing lower priced consumer goods.
The Marcellus Shale has accounted for 25% of all natural gas volumes in the US. Itís also closest to the premium northeast markets. It would make one wonder why in late January we saw spot prices in New Jersey and New York trade up to $35 while prices in New England traded up to $65.
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