Natural gas outlook

Like other fuels, higher prices expected

The natural gas market has been experiencing record volatility as of late. With the winter season near, we can expect higher costs for all heating fuels including natural gas.

This extreme volatility included an unprecedented run-up early this summer before prices eased in late July. Therefore, nobody can say with certainty how much prices will continue to fluctuate.

Major reasons for the volatility are:

• The high cost of gasoline, diesel and other fuel sources are hiking both production and transportation costs.

• Natural gas, traditionally a domestic fuel, has become more of a worldwide commodity, so prices now more closely follow impacts in the global energy market.

• Our country's ability to increase imports of liquefied natural gas (LNG) now competes with increasing demand and prices for LNG elsewhere in the world.

• Weather extremes, including hurricanes.

How to control costs, energy use. We're here to help take some of the bite out of rising energy costs. Call our Home Energy Line at 252-7117 or online help at mge.com.

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