|
|
Article: Natural gas price spikes: causes and potential cures. (A market primer).
- Article from:
- Consumers' Research Magazine
- Article date:
- January 1, 2003
CopyrightCOPYRIGHT 2003 Consumers' Research, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Natural gas is an essential energy source in this country that has many applications, including heating more than 59 million homes and 5 million businesses, powering industrial and agricultural production, and generating a substantial amount of the nation's peak electricity needs. During the winter of 2000-2001, the wholesale price of natural gas peaked at a level almost four times greater than the average price since 1993. Figure 1 (on page 21) reflects this price spike in relation to natural gas prices over the period from 1993 through 2001.
[FIGURE 1 OMITTED]
One extraordinary aspect of this price spike was its prolonged duration, with prices ...