Myth: Natural Gas is cheap and will save rate-payers money.
Because of the recent boom in hydraulic fracturing of shale in the US and Canada, unprecedented by any real use for or established systems of use for Natural Gas, we are temporarily in a period of excess supply with relatively low demand for this specific fuel. High supply + low demand = low price. But the supply is predicted to remain constant and eventually decrease (natural gas is as non-renewable as oil, no matter how sustainable the industry likes to paint it), whereas the demand is quickly rising. Natural Gas now powers many public transit systems, more and more transmission and distribution lines are popping up, and many large facilities are now set up to export liquefied natural gas (LNG, the kind that can travel by cargo ship) to Asia and other overseas markets. Also, as more and more environmental and scientific feedback emerges and industries are forced to take more and more expense-accruing precautions, the added cost will certainly not be taken out of the companies’ precious profits but out of the price paid by the consumers.
The new equation becomes Lower Supply + Massive Demand + added costs not originally predicted by the industry = Skyrocketing Prices.
Many homes will spend upwards of 3,000-4,000$ (and those prices are gas industry estimates, mind you) converting from propane to Natural Gas, imagine their disappointment when they find themselves trapped in a fuel that betrayed their assumptions of saving them money in the long run. The only financial winners of this pipeline are Vermont Gas. Any attempt to defend this myth, (that the public will reap financial benefits) is just a mask donned by pipeline proponents to help our public officials save face while bending over backwards to shine the shoes of the 1%
2 thoughts on “Debunking Vermont Gas Falsehoods (Part I)”
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got a link?
When there is an abundance of info showing prices are artificially low unless something very new has taken place to raise prices even to a leveling of the playing field:
http://windcurrents.nrgsystems…
Even this conservative website recognizes the faulty logic & that it is a huge mistake to continue this:
http://www.realclearpolitics.c…
This investment website which also shills for paid membership, so vested interests could be in play here, report spells out how trouble in the ME will affect global energy markets which is partly why I believe we need to pick up the pace re renewables due to the volatility rather than increasing production of carbon sources.
http://www.caseyresearch.com/c…
Although some are quick to point out that the US is an exporter, a myopic view imo, as we are also an importer, there are very real problems in the geopolitical landscape – global markets affect everyone for better or worse.
Not exactly an expert here but if the sources are accurate & believable I think we should be ramping up renewables & efficiency.
I & other-half were faced w/this in ’08 -’09 when gasoline & home heating oil were skyrocketing. Awakening to the realization it is not only unaffordable but a volatile market we turned to wood, as much of a hardship as it is to deal with to achieve the maximum savings. Our budget & economy are now contingent upon it as it saves us thousands per year.
Also switched to hybrids which although requiring an initial investment the cost of ownership & driving also falls dramatically.
I don’t know who you are Kira, but I certainly agree with your thoughts. No one in main stream media is doing any type of this investigation. There are so may lies and mistruths spouted off by Vt Gas, that there could be an article every day about their deception. Keep up the good work and I look forward to Part 2.