Study: Gas Prices to Remain Stable for 2 Decades
A new study predicts that natural gas prices will remain stable over the next two decades due to sustained levels of shale production.
The report, Fueling the Future with Natural Gas: Bringing it Home by IHS CERA, predicts that natural gas prices in North America will range from $4 to $5 per 1,000 cubic feet in 2012 dollars through 2035 and notes a number of opportunities for an increase in natural gas use.
Researchers claim that even at market prices of $4 or less, about 900 trillion cubic feet of unconventional gas resources can be produced economically. Those figures represent more than 30 years of current-level U.S. consumption.
According to the study, over the next 15 years, an average residence that uses natural gas for heat will save $5,731 compared to an all-electric home.
“This means that the North American natural gas resource base can accommodate significant increases in demand without requiring a significantly higher price to elicit new supply,” Tim Gardner, IHS vice president, said in a news release.