Natural gas

 The fact that energy prices are rising is not exactly a revelation is it? In 2007, natural gas cost increased approximately 20% over 2006. Since 2002, natural gas prices have doubled.

Demand variables 

Several factors are influencing an increased demand for natural gas not only domestically but worldwide as well. With a movement to substitute natural gas for electric generation and other uses such as transportation to reduce carbon emissions, it is prudent to expect prices to continue to increase over the long term.
Environmental legislation that imposes financial penalties on power generation companies for producing excess carbon emissions is forcing newly constructed power generating plants to use natural gas as opposed to coal. 

Further, investment bankers that finance new electrical generation construction are simply unwilling to lend on projects unless they are firmly convinced their investment will not be jeopardized by penalties for excess carbon emissions. The best way to do that is to insist new projects use natural gas.
Also the fact that 60% of U.S. homes heat with natural gas and the increased role natural gas plays in the transportation industry are at the very least not helping reduce natural gas costs.

Supply variables 

It is widely known that natural gas production in the United States peaked about 2001. While the number of wells has tripled form 100,000 to 300,000 since 1971, the volume of natural gas produced still remains flat.  The U.S. imports 86% of it natural gas supplies from Mexico and Canada. Since these importers gas demand is increasing domestically relative to their production, there is simply less to go around.

The Liquefied Natural Gas (LNG) industry is attempting to bridge the supply gap with marginal success. Costs of LNG shipments are up to twice the cost of natural gas on the spot market making it unattractive to import. LNG is also facing resistance from environmentalists who don’t want LNG facilities built in their community. For these and other reasons, a meaningful impact from LNG technology wont be immediate. 

Ironically, large energy companies have expressed reservation at investing in costly infrastructure because of the uncertainty of the governments future energy policies with regards to alternative energy. Increased use of alternatives to natural gas like wind, solar and hydrogen fuel cell technology could potentially affect their return on investment.

 The bottom line is the long term trend established since 2000 has clearly been upward as evidenced by an annual price in the year 2000 of approximately $2 per mmbtu to an average of about $7 mmbtu in 2007. Thus far in 2008, natural gas has averaged approximately $10 per mmbtu and industry analysts are forecasting a continuous uptrend for the foreseeable future.
 

The onsite energy system by hydrogen power companyTN Labs is a logical solution for commercial and industrial applications seeking to reduce natural gas costs.. Savings of up to 40% can be realized as well as a significant reduction in carbon emissions.