The Herald of Everett, Washington
Customer service  |  Subscribe   |   Log in or sign up   |   Advertising information   |   Contact us

The top local business stories in your email

Contact Us:

Josh O'Connor
Phone: 425-339-3007

Maureen Bozlinski
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049

Jim Davis
Phone: 425-339-3097

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Natural gas price at its lowest since 2002

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Chris Kahn
Associated Press
NEW YORK -- The price of natural gas has dropped below $2 for the first time in more than a decade.
A mild winter and a production boom have left the U.S. with more natural gas than Americans can consume. The glut has pushed down the price of gas 59 percent since it peaked at $4.85 per 1,000 cubic feet last summer. And prices have been tumbling all year.
On Wednesday afternoon, they passed a milestone. Gas fell to $1.999 per 1,000 cubic feet. The last time it fell below $2 was Jan. 28, 2002, when it hit $1.91.
Cheaper gas has already lowered heating bills this winter, and air conditioning costs are expected to fall this summer since many utilities burn natural gas for electricity. Major American manufacturers including chemical companies, fertilizer plants, aluminum and steelmakers also should benefit as energy costs tumble.
"If you're a consumer, this is great news," independent petroleum analyst Stephen Schork said. "This could spark a real rebirth of American manufacturing."
Supplies of gas are high because improved drilling techniques have boosted production, and because an unusually warm winter meant people used less gas for heating.
Meanwhile, oil prices rose on positive signs for the economy and energy demand. Prices rose with a rebound in the stock market. Aluminum maker Alcoa also surprised Wall Street late Tuesday with a first-quarter profit instead of a loss, thanks to stronger sales to carmakers and other manufacturers. Alcoa is the first major company to announce earnings for the quarter.
Benchmark U.S. crude rose by $1.28 to $102.31 per barrel on Wednesday.
Story tags » Energy & Resources



Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup