In the past natural gas has been viewed by some in the electric power industry as a fuel with an especially volatile price. A article on NASDAQ.com titled: US Power Companies May Be Forced to Embrace Shale-Gas Boom considers past and potential future use of natural gas in electricity generation.

Natural gas is used as both a fuel and a feedstock in the chemical industry. An article on BusinessInsider.com explores what a new abundance of gas might mean for the chemical industry.

Daniel Fisher, a senior editor at Forbes has a blog post titled: “A New World of Cheap Gas“. In the post he explores the impact of new gas production on contract rates, natural gas uses, the impact on renewable energy technology, government policy and more.

“EIA expects this year’s annual average natural gas Henry Hub spot price to be $5.17 per million Btu (MMBtu), a $1.22-per-MMBtu increase over the 2009 average. EIA projects price increases to continue in 2011, averaging $5.65 per MMBtu for the year. Projected working gas inventories end the first quarter of 2010 at about 1,550 billion cubic feet (Bcf) compared with 1,644 Bcf in the previous Outlook because of colder-than-normal weather in February. Natural-gas-weighted heating degree-days were nearly 11 percent above the 30-year norm last month.” Quoted from EIA Short-Term Energy Outlook EIA.

Does the US have an unlimited supply of inexpensive natural gas from shale that will be quickly produced or will the resource be produced more slowly and sold for higher prices? An essay in the Financial Times explores this question.

Natural gas prices can vary significantly from one state to another. Supply, demand, delivery costs and regulatory environments can all have an impact on the price of natural gas. The prices shown below are residential rates from 2009 but you can download a diversity of current and historical prices at the Energy Information Administration website.

Industry experts believe that the amount of natural gas produced from shale will rise steadily in the United States. That increase will keep prices low and attract new customers to natural gas. More in an article on the Houston Chronicle website.

The Energy Information Administration reports that the wellhead price of natural gas rose strongly in October and November. The November wellhead price was $3.64/Mcf.

The Energy Information Administration reports that the wellhead price of natural gas fell in September to $2.92 per thousand cubic feet. That is its lowest level since August, 2002.

The Wall Street Journal has an article titled: “America’s Natural Gas Revolution: A ’shale gale’ of unconventional and abundant U.S. gas is transforming the energy market.”

“At the end of 2008, domestic natural gas proved reserves reached their highest level since the U.S. Energy Information Administration began reporting them in 1977. Total U.S. proved reserves of dry natural gas rose by 6.9 trillion cubic feet from 2007 to 2008.” Quoted from the Energy Information Administration report.

The American Petroleum Institute and PriceWaterhouseCoopers have prepared a report titled: “The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added”. It is a .pdf document.

The Energy Information Administration released a report on the potential for oil and gas development in the Arctic Ocean. That report states… “Given that the Arctic resource base is predominantly composed of natural gas and natural gas liquids, the importance of Arctic oil and natural gas resources is likely to be affected by the growing realization that shale beds in existing petroleum provinces around the world might be capable of producing 5,000 to 16,000 trillion cubic feet of natural gas.47 This potentially large shale gas resource could significantly defer the future development of Arctic natural gas resources.”

Range Resources reports a third quarter net loss of nearly $30 million even though their natural gas production levels broke a company record. The problem: low gas prices.

Allen Brooks has prepared “Deciphering the US Natural Gas Market” a summary of trends in natural gas prices and the United States natural gas market for EnergyTribune.