Energy Efficiency Looks Beyond the Natural Gas Boom
From Energy Collective
The recent boom in shale gas production and the subsequent decrease in the price of natural gas have left some wondering what the role for energy efficiency will be in the future. As a new ACEEE white paper explains, energy efficiency measures are still cost-effective in any foreseeable natural gas price environment. States should deploy cost-effective and readily available energy efficiency measures now to help provide long-term stability to the electric and natural gas markets and ensure that natural gas resources are used as efficiently as possible.
Historically, the natural gas market has experienced booms and busts where prices ranged from $2 to $16 per million British thermal units (MMBtu). Last winter, the United States entered a boom period driven by unseasonably warm weather and an explosion of domestic shale gas production and prices at historic lows-under $2 per MMBtu. Looking forward, ICF forecasts that prices will not remain at the current low levels. ICF estimates a steady increase in the price of natural gas to more than $4 per MMBtu by the end of 2012. Over the long term ICF forecasts that prices will increase as demand accelerates, bringing the price closer to $7 per MMBtu ($2010). The current wellhead price of gas is currently around $3 per MMBtu, up from $1.89 in April of this year.