Devon Could Jump $30 Higher By Fall 2012
As oil prices continue to rise resulting in consumers paying upwards of $4 per gallon at the gas pump, natural gas continues to increase its appeal to global wide consumers.
However, despite the anticipated rise in demand, natural gas has seen a significant drop in price. This year, it has been reported that natural gas is selling at 10 year lows. This drop in price is largely attributed to the high supply of natural gas in the United States. It has been estimated that the United States contains 2,214 trillion cubic feet of drillable natural gas, an estimate that is 33% higher than the government’s 2008 estimates.
As a result of the United States’ increased natural gas reserves, along with the mild winter that resulted in a reduced amount of natural gas being expended for consumer’s to heat their homes, natural gas in the United States is experiencing a significant surplus for the start of 2012.
This surplus along with the ten year lows on price has caused many companies who have been heavily reliant on fossil fuels, to begin to look into an increased use of natural gas. Trucking companies, which consume approximately 17% of the United States fossil fuel annually, have begun to look for ways to transfer their reliance from oil to natural gas. Many long distance trucking companies have begun to look into developing natural gas refueling stations on the interstate highways in an effort to utilize more trucks that are fueled by natural gas.To continue reading, click here.