Natural Gas and Oil Prices expected to stay steady

 

Fort St. John consumers can expect to see similar energy costs compared to last year, with natural gas costs facing a small reduction in prices.

There has been steady natural gas production levels in North America which has meant strong inventories which should drive prices lower than last year. Natural gas prices are expected to fall between US $3.50/MMBtu and US $4.50/MMBtu. While costs may be lower, consumption in North America is expected to increase because of increased demands from power generation and industrial sectors.

Crude oil is expected to cost between US $75 and US $85 per barrel which would be a similar cost to last year. The price will largely depend upon the pace of the ongoing economic recovery. World oil demand is increasing, but OPEC indicates there is adequate spare production capacity. Home heating oil is closely linked to the price of crude so costs should be similar to last year.

Prices for retail gasoline should also remain somewhat similar to what they are now. Gasoline prices vary across Canada because of different refining and transportation costs, as well as the differing local taxes.

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