QUICK HEAT HEATER

Quick Heat Heater

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Since 1999, residential natural gas prices in the United States have exhibited an overall increasing trend. The 2004 national average residential price of $10.74 per thousand cubic feet (Mcf) exceeded the 1999 average price by more than $4 per Mcf. Although residential natural gas prices decreased by $1.74 per Mcf between 2001 and 2002, they were still $1.20, or almost 18 percent higher than in 1999. The national average price of natural gas is only part of the story as the prices in individual States can differ greatly. These differences are often related to a market’s proximity to the producing areas, the number of pipelines in the State, and the transportation charges associated with them, as well as State regulations and degree of competition. For example, based on 2003 data, the residential consumers along the Atlantic Coast tend to pay the most, with prices averaging $11 per Mcf or more (Figure 2). In contrast, States in the middle of the country benefit from either indigenous production or the presence of major trunk lines traversing the State. The availability of relatively abundant supplies results in prices less than $10 per Mcf

Each year, EIA projects the average price, consumption, and total cost of natural gas during the upcoming winter for a household in the Midwest. (The Midwest is used because over 70 percent of its 29.9 million households heat their homes with natural gas–the highest concentration of any region.) For the heating season of $1.55 per therm (1 therm=100,000 Btu, which is the heat content of about 100 cubic feet of gas), or about $15.95 per Mcf, for natural gas this winter (Table 1

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