Why Are Natural Gas Prices Rising?

Learn How to Better Protect Yourself from Seasonal—or Elongated—Price Spikes.

Like many consumers who use natural gas to heat their homes, you may have noticed that energy prices seem to be spiking lately, especially now, as it begins to get colder here in the Greater Northeast United States. The question that remains is… why? Read on to learn more about why price fluctuations occur—and what you can do to keep your energy costs down this winter season, and beyond.

Natural Gas Storage Levels are Significantly Below Historic Norms

The lower production of natural gas seems to be due in part to Hurricane Ida, which caused a pause in production that is still impacting 77.3% of the typical output from the Gulf of Mexico. In fact, The Energy Information Administration reports that U.S. natural gas storage is currently 7.4% below its average over the last five years and 16.8% below last year’s level at the same time, according to a CNBC Market Insider report.

Supply and Demand

While natural gas is a popular source of power for heating, cooking, and electricity generation, there are other uses that are putting an increase on demand, from a variety of angles:

• Natural gas is in demand by the agricultural industry for crop drying and fertilizers.
• The manufacturing industry uses natural gas in the production process for making paper, glass, and many other goods.
• Natural gas can also be used to power air conditioners, which are considered more energy-efficient and environmentally friendly.
• The U.S. is an exporter of natural gas, and so demand from the global market also puts strain on our country’s supply.

When all this demand comes on heels of supply shortages, the result is skyrocketing prices. Currently, natural gas is higher than it’s been since 2014.

Natural Gas Prices are Predicted to Keep Rising

Not to pile it on, but the forecasts for natural gas prices aren’t looking so hot—at least, not for consumers who are hoping to see prices return to a more even-keel cost. That’s due in large part to the heavy demand for natural gas. Fortunately, with Discount Power, you have the power to choose an energy plan built to fit your needs—and your budget. We offer you a variety of natural gas plans with varying term lengths and pricing options to lock-in low prices for extended periods, or let you ride the market pricing month-to-month. Whatever is best for you!

Greener Energy Doesn’t Have to Cost You More

Natural gas prices may have doubled this year, but your costs don’t have to! By switching natural gas suppliers, you can reduce your carbon footprint, move to a renewable energy plan, and get the most affordable rates. The energy experts at Discount Power can walk you through your options and explain the changes you could see when you become a customer. Feel good about the energy you use every day.

What May—or May Not—Change When I Find a New Energy Supplier?

• Stronger buying power: New suppliers are often more responsive to their customers’ needs, since if they don’t prove their worth, the customer can easily switch back to their utility provider.
• More affordable costs and some valuable perks, too: Your new supplier may be able to provide you with a better rate than the utility, plus offer incentives, rewards, or rebates. Our goal is to help you get the best rate possible, while making sure you retain the service benefits you value.
• Reduced carbon footprint: With tens of thousands of customers, Discount Power has proven to be a safe, easy way for people like you to take control of their energy costs and reduce their carbon footprint by switching to one of our Green Plans.
• How you get your energy: Your current utility provider will still transport your natural gas, since they will remain responsible for the pipes and lines running to your home. Your utility will still respond if you need help, such as during a rare gas leak.

The Power to Choose Your Natural Gas Supplier

Don’t be beholden to the utility company’s soaring natural gas costs that they pass along to you, the customer. Discount Power helps make it easy for you to understand and manage your natural gas costs, providing competitive energy supply service across the Northeast United States. Currently, Discount Power operates with natural gas utilities in Maryland, New Jersey, Ohio, and Pennsylvania servicing both residential and commercial customers.