Essay Database

High Natural Gas Prices "Natural gas seasonal prices staying high" is the title of an article written by Josef Hebert from the Associated Press on June 8, 2004. The article discusses the amount of natural gas stored in the United States as well as the growing demand of natural gas and how the pricing will stay high throughout the summer months of 2004. Natural gas has thousands of uses approximately 23 percent of the energy consumption of the United …

…the natural gas industry would increase stocks throughout the summer. The supply and demand analysis can be seen in Figure 1. P0 is the price that persisted prior to 2003. The effect of government policy was to cause the demand curve to shift from D0 to D1. Price increased to P1. Price would have increased to P2 were it not for imports from Canada. The quantity imported is shown as the difference Q1T minus Q1D.