Natural Gas, Naturally High (October 19, 2005)
There seems to be little official recognition, either from the political leadership or Wall Street, that there's a knife in the back of the American consumer which will bleed him dry: the rising cost of natural gas. It is instructive to go over the basic facts as reported in the Wall Street Journal on 10/17/05:
As temperatures drop, people who heat their homes with natural gas -- about 57% of the 110 million U.S. households, according to the Census Bureau -- are in for an unpleasant jolt. Natural-gas prices have risen above $13 per million British thermal units from around $7 a year ago. Most of that extra cost is getting reflected directly in gas bills. Owners of gas-heated homes should expect to spend an average of $1,096 this winter, up 48% from last winter's already-high prices, according to the federal Energy Information Administration.I have bolded the above quote to highlight just how inaccurate official projections were on the future cost of energy. The above facts suggest taking all predictions that energy costs will fall soon with a very large, if not extremely large, grain of salt.
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copyright © 2005 Charles Hugh Smith. All rights reserved in all media.
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