Comparison with earlier government-controlled market 5. Government intervention would be short sighted. The U.S. economy is strong and over time, energy demand tends to track economic growth. Recent fluctuations in natural gas prices are the market s way of balancing supply and demand. Consequently, demand from all customer sectors is rising, particularly as a fuel of choice for new power plants.
Weather can significantly impact demand for natural gas.
The move towards gas fired electricity generation will create year-round demand for natural gas as utilities and energy service providers meet electricity demand for heating in the winter and for air conditioning in the summer. Recently, supply has lagged rising demand as reflected in higher prices, but natural gas producers are working hard to bring more gas into the market. Meeting the challenge of supplying the market q Almost 90 percent of natural gas consumed in the U.S. is produced domestically. Most of the remainder comes from Canada via underground pipelines. The accesible domestic natural gas resource base is mature.