Breaking down the respective costs of various mainstream home energy sources, natural gas will be the cheapest to use in 2007, according to the Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy. The DOE forecast of projected costs of natural gas, heating oil, electric, propane and kerosene energy use was published in the March 21 Federal Register. According to DOE, one million Btus of natural gas will cost an estimated $12.18 this year — while the same amount of electricity will cost families more than twice as much ($31.21) on average. Natural gas will also cost less than heating oil ($16.01), kerosene ($19.48) and propane ($20.47). “These cost savings can add up quickly, especially for home heating and water heating,” said Tom Moskitis, American Gas Association (AGA) managing director of external affairs. “For water heating, an average household using a conventional storage type water heater would save around $220 per year in energy costs by using a natural gas water heater instead of a similar electric unit. That means the natural gas water heater can pay for itself after just a few years — and save a consumer $2,000 in energy costs over the nine-year life of the appliance.” According to AGA analysis of the DOE’s cost projections, the least expensive way to heat a home in 2007 is with a high-efficiency (94%) natural gas furnace. The association said this option will cost consumers an estimated $801 in 2007, compared with $1,930 for the most expensive home-heating option — an electric resistance system (such as electric warm air furnace heating). For the full year 2007, AGA found that an 84%-efficient oil furnace would cost a consumer $946 while a 94%-efficient propane furnace would cost $1,184. An electric 7.7 HSPF heat pump would come the closest to the natural gas option, costing customers $814 in 2007.
Breaking
Articles from Breaking
DOE Taps Natural Gas as Cheapest Home Energy for 2007
Breaking down the respective costs of various mainstream home energy sources, natural gas will be the cheapest to use in 2007, according to the Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy. The DOE forecast of projected costs of natural gas, heating oil, electric, propane and kerosene energy use was published in the March 21 Federal Register.
April Trades Sub-$7; Next Move Depends on Whether There is Weather
After breaking the April natural gas futures contract below support at $7.100 late last week, the bears cleared another hurdle on Monday in penetrating the $7 level and settling the contract at $6.912, down 17.1 cents on the day. Whether or not it retains a $6 handle depends on what kind of weather rolls in over the next week, which is still open to debate.
Futures Continue to Sink as Buyers Bide Their Time
With the continued lack of both a hot summer or threatening storms in the tropics, natural gas futures continued lower on Thursday, breaking below recent long-term support lines. After recording a new low for the move of $5.610, August natural gas went on to close at $5.664, down 10.1 cents on the day.
Small 77 Bcf Storage Injection Buoys Futures
One day after breaking under the $6 mark for the first time, July natural gas futures traded above the important psychological level all day Thursday with the help of a somewhat bullish 77 Bcf storage injection report from the Energy Information Administration (EIA). The prompt month traded within a $6.010-6.200 range on the day before settling at $6.191, up 21.7 cents on the day.
Empire Completes $102M Missouri Asset Acquisition from Aquila
Breaking into the natural gas service segment through acquisitions, The Empire District Gas Co. said Thursday that it has completed the purchase of the Missouri natural gas distribution operations of Aquila Inc. The operations consist of 48,500 customers in 44 Missouri communities in northwestern, north central, and west central Missouri.
Natural Gas Futures Inch Lower as Spread with Crude Expands
Even with crude futures breaking back above $70/bbl on Tuesday, June natural gas futures managed to resist the temptation to follow. For the second consecutive session, prompt month natural gas traded within a slim range before setting its sights lower. After hobbling between $6.560 and $6.720, June natural gas closed at $6.581, down 11.5 cents on the day and 19.4 cents lower for the week to date.
Futures Explore Lower End of Price Range Despite Bullish Hurricane Forecast
After failing to break out to the upside on Monday, natural gas futures traders pushed the prompt month contract lower Tuesday, breaking below what some market participants thought to be a double bottom at $7.120. May natural gas put in a low of $6.970 before settling at $7.065, down 17.9 cents on the day.
Futures Drop Below $8 Before Afternoon Rally on Short-Covering
Breaking its range of the last 12 sessions, February natural gas futures opened Thursday at $8 and worked itself even lower in anticipation of yet another bearish natural gas storage withdrawal report. Following almost no reaction to the 81 Bcf pull from storage, prompt-month natural gas pushed back above $8 to settle at $8.229, down 23.1 cents from Wednesday’s close.
Futures Reach All-Time High as Squeeze on Noncommercial Traders Continues
Putting in yet another multiple record-breaking trade day, January natural gas on Tuesday gained 50+ cents for the second consecutive session to settle at $15.378, up 53.7 cents from Monday. In addition to eclipsing the old all-time high prompt month settle of $14.994 (Dec. 8), the January contract also set a new spot month high of $15.78 during the day, which was high enough to exceed January’s life-of-contract high of $15.600 (Oct. 5).
