Dept. of Energy predicts 17% rise in natural gas prices

Dig out your heavy wool sweaters! Natural gas prices in the residential sector are predicted to rise about 17% this year, according to the Energy Information Administration (EIA), the U.S. Department of Energy's statistical agency.

This is despite a predicted increase in U.S. marketed natural gas production of 7.8 percent in 2008 and 3.8 percent in 2009.

Several factors contribute to the impending price hike, including:

• An expected increase in total (residential and commercial) natural gas consumption of 2.7% in 2008 and 2.2% in 2009.
• Rising prices in Europe and Asia, and
  
• Increased global demand for liquified natural gas (LNG).

For more information, visit the EIA's website at www.eia.doe.gov.