Newsday.com – Greenspan Sees Higher Natural Gas Prices

Running out of gas?

this source (title: “Will the natural gas supply meet the demand in North America?, International Journal of Energy Technology and Policy”) will give you some more background on the North American natural gas situation, also check the official forecast of the Energy Department and the American Gas Association site. Of course, this means good news to Canadians as stated in this Globe and Mail article — so good, Canada already can’t keep up with US demands….what now? Russians to the rescue! Putin has been lurking around the White House for quite a while to sell Russia’s gas to the Bushies…Russia is quite active in that realm; back east they are planning to build a natural gas pipeline from Eastern Siberia to China and South Korea. A 20 billion dollar investment set to bound the three nations for decades. Such an “investment” also has many political implications.

Newsday.com – Greenspan Sees Higher Natural Gas Prices High natural gas prices are likely to last into next year, and could weaken some key American industries’ ability to compete, Federal Reserve chairman Alan Greenspan said Tuesday.

Greenspan stopped short of suggesting that tight natural gas supplies, which have caused prices to more than double from last year, might thwart economic recovery.

Industries that heavily rely on natural gas hope that prices will decline, but Greenspan said market signals suggest tight supplies and high prices will persist because — unlike oil — the U.S. gas market is unable to draw on world supplies easily to meet surges in demand.

“The markets are telling us that $2 gas is a historic relic — at least for the time being,” Greenspan told a hearing of the House Energy and Commerce Committee. Natural gas at wholesale has surged to $6.25 per thousand cubic feet, compared to an average of about $3 last year.

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