How much impact do higher natural gas prices have on home heating costs?
Like gasoline, the price of the commodity is only one of the components of the price the end user pays for the product. The price residential users pay for home heating is based on three main components: pipeline transportation costs, local distribution costs and the price of natural gas. Although the natural gas price fluctuates, the other charges remain fairly constant. As the price of natural gas increases, it comprises a larger percentage of the total amount consumers pay for home heating and results in higher monthly bills. 7. What impact do gas prices have on Shell’s exploration and development activities? As with most commodities, natural gas prices are cyclical in nature. While natural gas prices may fluctuate in the short-term, longer term we expect that natural gas prices will remain at a strong level and provide a good environment for future investment. • For an industry perspective on natural gas pricing, visit the Canadian Association of Petroleum Producers website – opens
