Falling natural gas prices may provide relief

Natural gas is a commodity that heats many homes across the United States and consumers have seen their heating bills jump over the past few years. Major hurricanes that have tracked across the Gulf of Mexico shut in supplies and caused prices to jump in late 2005, while the run-up in crude last year and the rush into all types of commodities caused prices to spike in 2008.


But as the chart by the Energy Information Administration reveals, prices have plummeted, signaling that next year's heating season could offer significant relief to homeowners and add to disposable income.

The recession is a good part of the reason but supplies are more than ample as producers continue to inject vast quantities of the colorless and odorless gas into underground storage tanks.

Working Gas in Underground Storage Compared with 5-Year Range
As you can see, storage is well above the average for this time a year amid weak industrial production and mild summer temperatures. Production from the giant natural gas field known as the Barnett Shale under Fort Worth, Texas has also played a role.