June 20, 2006

WHICH IS, NOT COINCIDENTALLY, THE NATURAL PRICE OF A BARREL OF OIL:

Relief for consumers as natural-gas prices drop: Ten months after Katrina caused a price spike, electric utilities switch to natural gas. (Ron Scherer, 6/21/06, The Christian Science Monitor)

Even with their air conditioners at full blast, some consumers might eventually be in for a surprise: relief on their energy bills.

The price of natural gas has fallen about 50 percent since hurricane Katrina drove up prices last fall. As oil prices hover around $70 a barrel, analysts say the spot price of natural gas now equals the energy potential of oil worth $41 a barrel - a differential that is spurring businesses and utilities to start switching over to the less costly fuel.

Posted by Orrin Judd at June 20, 2006 7:07 PM
Comments

And that is what we shall do with the surplus.

Posted by: joe shropshire at June 20, 2006 7:50 PM

While I tend to agree with the premise, it's awfully hard to determine the "natural" price of oil when so much of the world supply is controlled by despots.

Posted by: ghostcat at June 20, 2006 7:58 PM

Why would I care?
I live in an area with average summer temp reading 90-100+ degrees.
Four years ago I bought a little window a/c unit, 5,000 btu's and an efficiency rating of 12.
My living area stays around 75 degrees, and my utility bill electric portion goes up about $6.
This is in a "cottage" with no/nada/zero insulation and rotted out single pane windows, running the a/c 24/7.
Unrelated, anybody reading this, who also likes "modern blues", if you don't have "Albert King and Stevie Ray Vaughn in Session", order now. If only only for the great cut "Don't Lie to Me", which, of course, is what I'm listening to as I comment.
Mike

Posted by: Mike Daley at June 20, 2006 9:38 PM

Mike Daley,

Thanks for the suggestion. I'll check it out. If you're in the mood for some country, check out the Merle Haggard Ultimate Collection. The Strangers were among the best backups. Ramblin' Fever has some great playin'.

Posted by: jdkelly at June 21, 2006 2:49 PM
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