May 6, 2005—A new report by the American Council for an Energy-Efficient Economy (ACEEE), analyzes the impacts of expanded energy efficiency and renewable energy investments on natural gas prices.
The report, Impacts of Energy Efficiency and Renewable Energy on Natural Gas Markets: Updated and Expanded Analysis, also updates the organization’s December 2003 analysis demonstrating the price effect from reducing natural gas demand.
The study finds that expanded energy efficiency and renewable energy could reduce wholesale natural gas prices by 37 percent in the next 12 months, based on total consumption reductions of about 1 percent.
“Energy efficiency is more important than ever if we are to rebalance gas markets in the near term,” said Dr. Neal Elliott, ACEEE industrial program director. “Natural gas markets have gotten significantly tighter in the past two years. While the current focus has been on oil prices, which are still not at record high levels in real terms, natural gas prices continue at record real levels, over $1.50 million Btu higher than they were just a year ago. Unless we take serious action on gas demand, natural gas prices are likely to remain high and volatile for the next few years because new supply resources are years away at best.”
To see the report, visit the ACEEE Web site.
