Natural Gas - Economic Class
| Natural Gas | | | | | | |
Table of Contents Introduction 3 Principal Factors Influencing Demand 3 Residential and Commercial Heating 3 Price and Fuel Switching 3 Industrial Advancements 3 Growing Environmental Concern 4 Recent Natural Disasters 4 Growing Global Demand 4 Principal Factors Influencing Supply 5 Technology 6 Infrastructure 6 Unconventional Sources 7 Availability 7 About the Industry 8 Natural Gas Price Trends 9 The Future of Natural Gas 11 Conclusion 12 References 13
Introduction
Natural gas is a fundamental component of the world 's supply of energy. It is colorless, shapeless, and odourless and can be combustible. When natural gas is burned, it gives off a great deal of energy with few emissions. Although many people may think that the gas in their car or the gases in their BBQ are natural gases, they are wrong. Natural gas is mixture of hydrocarbon gases, which were originally created million years ago through the remains of plants, animal, and microorganisms, compressed and mixed with mud which made fossil fuel (naturalgas.org, 2010). Natural gas is called a "fossil fuel" because it is formed from ancient life.
Principal Factors Influencing Demand
The demand of natural gas is increasing every year by, not only commercial businesses but also by the consumer. Several factors that influence the demand for natural gas are as follows:
Residential and Commercial Heating
Demand for natural gas is typically cyclical. The highest demand occurs during the winter when the heating requirements are greater as consumers need warmth from the cold weather. The lowest demand occurs during the summer when heating requirements are low due to the warm weather.
Price and Fuel Switching
Some industrial and electric generation consumers are able to switch between fuels for their energy needs. If the prices of natural gas are high, these consumers may choose to switch to a cheaper
Table of Contents Introduction 3 Principal Factors Influencing Demand 3 Residential and Commercial Heating 3 Price and Fuel Switching 3 Industrial Advancements 3 Growing Environmental Concern 4 Recent Natural Disasters 4 Growing Global Demand 4 Principal Factors Influencing Supply 5 Technology 6 Infrastructure 6 Unconventional Sources 7 Availability 7 About the Industry 8 Natural Gas Price Trends 9 The Future of Natural Gas 11 Conclusion 12 References 13
Introduction
Natural gas is a fundamental component of the world 's supply of energy. It is colorless, shapeless, and odourless and can be combustible. When natural gas is burned, it gives off a great deal of energy with few emissions. Although many people may think that the gas in their car or the gases in their BBQ are natural gases, they are wrong. Natural gas is mixture of hydrocarbon gases, which were originally created million years ago through the remains of plants, animal, and microorganisms, compressed and mixed with mud which made fossil fuel (naturalgas.org, 2010). Natural gas is called a "fossil fuel" because it is formed from ancient life.
Principal Factors Influencing Demand
The demand of natural gas is increasing every year by, not only commercial businesses but also by the consumer. Several factors that influence the demand for natural gas are as follows:
Residential and Commercial Heating
Demand for natural gas is typically cyclical. The highest demand occurs during the winter when the heating requirements are greater as consumers need warmth from the cold weather. The lowest demand occurs during the summer when heating requirements are low due to the warm weather.
Price and Fuel Switching
Some industrial and electric generation consumers are able to switch between fuels for their energy needs. If the prices of natural gas are high, these consumers may choose to switch to a cheaper
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