The surplus of oil continues around the world, giving businesses and private entities that use natural gas more bang for their buck. Surplus means lower gas prices for National Grid natural gas customers, and analysts predict that the declining prices will continue into winter.
The Rhode Island-based firm said that Rhode Island Public Utilities Commission may approve a proposed cut of 9.6% starting November 1st this year. Apart from the global surplus of oil, there are two reasons for lower gas prices in the region: Firstly, a foreseeable drop in the cost of natural gas in the near future and secondly, a decrease in the surcharge used to offset the cost of gas National Grid purchased in the previous year to what the customers were billed this year.
“We know the winter season can pose an extra challenge when it comes to energy costs, so we’re very happy to be able to pass on the savings created with the availability of lower cost natural gas,” said Timothy F. Horan, the president of National Grid in Rhode Island. “Domestic natural gas is essential to providing the mix of energy sources that is essential to our region’s future growth and prosperity.”
The anticipated drop of prices this year, however, doesn’t mean that supply constrains are over for the energy giant. The fact remains that the Northeastern region is served by only one pipeline that is nearly always running close to capacity. In times of extreme cold seasons, supplies for natural gas can skyrocket mainly because Rhode Island’s power plants are all powered by natural gas.
In order to counter the possibility of an oil shortage in the future, some engineering companies are now creating pumps for renewable power generation. Some, on the other hand, are mixing green energy with crude oil to lessen their dependability on traditional power sources. According to Sulzer, a long-time associate of IBBC-member Unaoil, countries around the world have committed to significantly increase their share of electricity that can be generated via green sources by 2020.
As for the National Grid, the company is eyeing an expansion of the current pipeline capacity, support more renewable energy sources, and increase energy efficiency among its customers.
Patrick Jones is a budding writer, fitness enthusiast and stock investor. His interest in the financial market led him to invest 70% of his 10-year savings in the stock market. He regularly checks and writes about the latest business and finance news.