High Natural gas prices may cut U.S. economic growth by 2.1 %

[JohnWxy]

High (natural) gas prices may cut U.S. economic growth by 2.1 percent, according to the Federal Reserve Bank of Dallas.1


http://www.ucsusa.org/clean_energy/clean_energy_policies/renewable-energy-can-help-ease-natural-gas-crunch.html

The primary solution proposed by the White House and many in Congress is to increase gas production. They would provide large new subsidies to gas producers, increase drilling in environmentally sensitive areas, and expand imports of liquefied natural gas (LNG). We would become increasingly dependent on importing LNG from some of the same OPEC countries we are now dependent on for oil.

Reducing gas use by improving energy efficiency and developing renewable energy sources (wind, solar, geothermal, and bioenergy) can be faster, cheaper, cleaner and more secure than relying primarily on developing new gas supplies.

Past EIA analyses have found that consumers could save money on electricity and gas bills if electric companies met a standard of 10 percent renewable energy by 2020.2 With EIA’s new 2004 gas price forecast, a renewable standard of 20 percent by 2020 would save even more money ($26.6 billion), according to new analysis by the Union of Concerned Scientists (UCS) using EIA’s National Energy Modeling System (NEMS). Commercial and industrial customers would be the biggest winners (Fig. 3)

[HockeyMom]

1. We have been lucky in NE, SO FAR

The temps have been ABOVE normal, 50s in January. Still, my natural gas bill last month was close to $300. Once it gets really COLD, I am doomed. I cannot afford $600 a month heating bills on top of $200 a month electric bills (surcharges).

[phantom power]

2. APS (AZ) is requesting a 20% rate hike.

They claim they've got 500 million dollars of unrecovered expenses. Not that I trust utilities unconditionally, but it's not hard to believe them, considering that NG prices doubled on them practically overnite.

[Massacure]

3. Utilities generally are pretty well regulated.

It's the oil and gas producers that are the robber barrens, not the utilities generally.

[JohnWxy]

4. True