In a recent report from the Federal Energy Regulatory Commission (FERC) on the “Winter 2013-14 Energy Market Assessment,” it is estimated that the Northeast is now the top gas producing region in the country. This is a result of a sharp increase in production from the Marcellus Shale, an area of marine sedimentary rock located in the northeast and within two-thirds of Pennsylvania.
Since the Marcellus Shale is located close to areas where natural gas is deregulated and in high demand, like Pennsylvania, it has become a great source for efficient and expansive energy resources. It is expected that there will be sufficient supply for this upcoming winter’s expected demand for natural gas throughout the state.
What does this mean for UGI EnergyLink customers? It means that that we have the opportunity to offer lower prices than we could have if there was less supply of natural gas.
Pennsylvania’s Natural Gas Production
Since Pennsylvania now has a deregulated market for natural gas, the state has produced a record amount of natural gas and is fast becoming one of the most productive gas resources in the world—leading to an increase in new jobs and revenue for the state. In the first half of the year, Pennsylvania’s natural gas production passed the record and produced 1.4 trillion cubic feet. With that rate, the Commonwealth could produce more than 10 percent of the entire country’s annual natural gas usage.
In a report from the state’s Department of Environmental Protection, data shows a 57 percent increase in gas production compared to the same date range in 2012.
According to the U.S. Department of Energy, natural gas from shales has the potential to:
- Significantly increase the United States’ security of energy supply
- Reduce greenhouse gas emissions
- Lower prices for consumers
- Facilitate variable renewable energy sources, like wind and solar
About 16 percent of U.S. natural gas production is attributed toward shale sources, but this amount is expected to grow as the resource is developed.
2013 Natural Gas Heating Season
In the report from the FERC, natural gas conditions look positive going into the upcoming heating season. Moderate natural gas price increases are expected and natural gas storage levels are in line with the five-year average.
If supply of natural gas is able to meet demand for the heating season, prices of natural gas do not need to climb as steep to make up for the discrepancy—as always, weather plays a major factor in how much natural gas for heating is required in the region.
Natural Gas Services from UGI EnergyLink
What do these forecasts and high levels of natural gas supply within PA mean for UGI EnergyLink customers? It means the opportunity to offer lower prices than we could have if there was a greater demand or less supply.
For example, you would be able to set your thermostat in your home in Reading at 72 degrees and pay the same monthly utility bill that you would pay if your fixed rate for natural gas was higher and you set your thermostat at 68. Warmer homes and happier customers in our service area is what we strive for at UGI EnergyLink.
If you’re looking for a natural gas provider for your home in Pennsylvania, UGI EnergyLink is the right choice and we have several reasons why:
- We’re trusted – UGI EnergyLink is part of UGI Energy Services, LLC., a company with over 127 years of experience providing natural gas service to homes throughout Pennsylvania. Over 30,000 residential and commercial customers in over nine eastern states have selected us as their natural gas supplier.
- We offer multiple gas pricing options – As a result of natural gas deregulation in PA, UGI EnergyLink can take advantage of market opportunities unavailable to tightly bounded utility companies. What does this mean for you? It means you can select from different pricing options that we offer, including fixed and variable pricing. If you live on a strict budget, a fixed rate option on natural gas gives you a chance to enjoy stability and protects you from unexpected price increases. If you prefer more flexibility, you may choose our variable rate plan.
- We offer an easy transition process – Even with the savings opportunities presented by transitioning to natural gas, you may think the change will be too much of a hassle. This simply isn’t true! If you already have natural gas lines installed in your home, just fill out our simple enrollment form—the process is hassle-free. If you’re unsure whether natural gas lines are installed in your home, call your local utility to find out.
To learn more about the natural gas market in your area and UGI EnergyLink’s residential services, contact us today!