Going along with this is, indeed, a substantial warming along the West Coast and up into Alaska and extending throughout the western two-thirds of Canada. But it can be cooler in the Southeast. Wilson notes that despite the wide variety of uses for natural gas, heating still makes up most of the wintertime demand in North America. Just as gas companies have gotten their inventories under control, unusually severe hurricane activity may disrupt the supply from the Gulf. Then along comes a normal or especially chilly winter.
Supplies run short, gas prices rise and consumers suffer the brunt of a price hike.
Recently, Michael began to look at the fortunes of other industries that use natural gas for feedstock. Wilson found that one chemical company's stock price and earnings were severely cyclical over the past decade. But when the following cold winter absorbs gas supplies for heating, and gas prices rise, the company's profits plunge. Columbia University and Scripps Institution of Oceanography recently announced a joint effort called the International Research Institute for seasonal to interannual climate prediction.