Analysis from the the U.S. Energy Information Administration concludes that natural gas was the only energy commodity to see a significant price change last year, when compared to electricity, coal and crude oil prices which fell over the same period.
In an Energy in Brief report released on Monday, natural gas prices showed a 12% increase between January 1 and December 31 in 2012.
- Average, spot natural gas prices were lower compared to 2011, however both futures and spot prices increased in the latter half of the year.
- Natural gas prices were generally uniform across the country, except when residential and commercial demand peaked during the colder winter months. During these periods, pipeline constraints into the Northeastern United States led to increased separation of the average natural gas wholesale (spot) prices at major hubs in New England and New York above the average spot price at Henry Hub.
Nevertheless, natural gas prices were still considerably lower than for the same period in 2011.
Average wholesale (spot) prices for natural gas fell significantly throughout the United States in 2012 compared to 2011. The average wholesale price for natural gas at Henry Hub in Erath, Louisiana, a key benchmark location for pricing throughout the United States, fell from an average $4.02 per million British thermal units (MMBtu) in 2011 to $2.77 per MMBtu in 2012. This was the lowest average annual price at Henry Hub since 1999.
A mild 2011-12 winter, sustained high natural gas inventories, and rising natural gas production in the Marcellus and Eagle Ford basins contributed to lower average spot natural gas prices at Henry Hub.
Credit http://www.eia.gov/todayinenergy/detail.cfm?id=9490
