Why are Natural Gas Prices Raising?
In today’s mass inflation event, we see the prices of everyday essentials reaching new all-time highs. Many are coming up with new and creative ways to save money. The energy sector is something impacting people all around the world right now. There are Global efforts to move away from non-renewable, high emission resources such as nuclear, coal and oil power. This has resulted in an increased demand for Natural gas to make up the difference in energy. However, due to the reduced production, climate change, and lockdowns in recent years, Natural gas mines are having difficulties keeping up with the demand.
What is Natural Gas used for
Natural gas has been used since the early 19th century to power lights on streets and in buildings (Natural gas solutions, 2022). Today, natural gas expanded its use to; grid electric generation, heating, and transportation to name a few. In American states such as California, Natural gas is now being considered as a low emission energy source to assist solar and hydro energy production, during times of drought and low sun exposure. However, natural gas is still a non-renewable resource and the more we use the less availability there is, with more emissions generated.
Current State of the Natural Gas Industry
Natural gas prices have been on a downcast since the 2008 great recession. However, during the global pandemic in 2020, we could see exponential growth in the use of natural gas. The spot price in Canada rose on average from $1.84 to the current price of $8.87 nearly a 700% increase with prices expected to continue to rise to $14 by the end of the summer (Stephenson, 2022). The increase comes from a surge of Work from home directives due to the Covid-19 pandemic. Also, the recent harsh summer and winter seasons linked to climate change amplified the demand for heating and cooling of the home, having a direct effect on prices. Moreover, natural gas producers are not able to keep up with the new demand due to a shortage of workers. This shortage comes from the downward trend the natural gas has experienced in previous years resulting in mass layoffs, making getting the resource more of a challenge.
How can Borrum Energy Solutions Help
The use of natural gas must be reduced and soon stopped, not increased. For a dwelling owner looking to reduce their expenses and dependence on non-renewable resources for a tiny home, cottage, or rural/northern home, the owner can incorporate a clean energy microgeneration wind turbine. Borrum energy solution has designed the Anorra and the Anorra Plus microgeneration wind turbines to offset dwelling owners’ emissions and cost of living.
To learn more on how to reduce your expenses and emissions visit www.borrumenergysolutions.ca