What Happened to the Natural Gas Crisis?

Late last year, the financial media was in a tizzy about the soaring price of natural gas. We were told that it was hurting poor people and seniors were freezing. And as always, there was No. End. In. Sight.
By December, the price of natural Gas soared to over $15 per million British thermal units, an all-time high. Also, these nasty Russians and their Gazprom were going to take over the world. We suddenly had a natural gas crisis on our hands.
As it turns out, the end was clearly in sight. Since then, the price of natural gas plunged by about 60%. Funny how we don’t hear much about this now.
The market did exactly what they’re supposed to do. It’s good to keep this mind when we hear all the horror stories about oil and gold. How high will oil go? Beats me. But I do know that where there’s a demand, there’s somebody trying to meet it with supply.
Here’s a chart of natural gas for the last two years.
natural gas.gif

Posted by on May 5th, 2006 at 2:37 pm


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