Energy conservation may avert natural gas supply crunch

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Natural gas prices have jumped dramatically in the past couple of months, and a Purdue University agricultural economist said that supply might also become an issue as natural gas production has decreased due to hurricanes Katrina and Rita.

"The fear is that the production we are losing now will cause shortages this winter," said Otto Doering. "New gas supplies cannot be brought on line quickly."

He said the only additional supply available is liquefied natural gas imported from the Middle East. "However, there are a limited number tankers to transport it and fewer port facilities to receive it," Doering said.

Doering said high prices could help keep adequate supplies of natural gas available. "With little flexibility to increase supply or reduce demand, a big price increase creates the incentive to limit use," he said.

"Conserving 10 percent would make a big difference right now," he said.

"We are at a tipping point where a small surplus that is expected to continue for a while could eventually greatly reduce prices."

Dealer & Applicator's Dealer Update

Comments (0) Leave a comment 

e-Mail (required)


characters left

Massey Ferguson 5600 Series

Our most advanced multi-tasking mid-range ever. Perfect for livestock, dairy, hay, and general all-around farm work, these exceptional loader tractors ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight