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Natural Gas Prices....your opinion

Discussion in 'The OT' started by John Corn, Jul 5, 2005.

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  1. Jul 5, 2005 #1 of 15
    John Corn

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    It's time for me once again to choose a natural gas supplier for my home heating here In Ohio. I've been offered 2 long term fixed rate options I'm intrested in.

    1. $9.39/Mcf for 3 yrs fixed price
    2. $9.95/Mcf for 5 yrs fixed price

    Do you expect Natural Gas prices to keep inching there way up?
    What does the future hold in Natural gas pricing?......anyone have any idea? For some reason I'm making theis a tough decision. :)
    I'm leaning towards picking option 2 for 5 yrs.

    Thanks
     
  2. Jul 5, 2005 #2 of 15
    Ray_Clum

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    Hopefully you've got a typo, but it appears that there is no benefit in signing for the longer contract. You pay more per Mcf for a longer period of time...
     
  3. Jul 5, 2005 #3 of 15
    Richard King

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    I don't think there is a typo there. If he locks in at the 3 year rate the rate after that contract could be significantly higher than the slightly higher 5 year rate. You need to take the total cost of the two contracts and calculate where the breakeven point is using each contract. If I were in your shoes and felt 100% certain I would be in the same house in 5 years I would probably go for the 5 year term.
     
  4. Jul 5, 2005 #4 of 15
    AllieVi

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    Amen.
     
  5. Jul 5, 2005 #5 of 15
    Geronimo

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    I would opt for the 5 year term-----but make sure you know what happens if you do cancel for any reason.
     
  6. Jul 5, 2005 #6 of 15
    John Corn

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    There's no typo, thats exactly my thoughts Richard.

    If I cancel early under the 3 yr term there's a $50.00 dollar fee
    and a $100.00 under the 5 yr term.

    My thoughts are natural gas prices are going to keep rising.
     
  7. Jul 5, 2005 #7 of 15
    RichW

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    I get a lot of natural gas for free from some of the foods I eat!
     
  8. Jul 5, 2005 #8 of 15
    AllieVi

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    Being a Western Pennsylvania native, I always had to chuckle at the local natural gas company name - "Peoples" (maybe it was a co-op or something). Yes. The name of the company was actually "Peoples Natural Gas." I don't know if it still exists (maybe someone can let us know).
     
  9. Jul 5, 2005 #9 of 15
    Richard King

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    They were here in Vero Beach also, but were bought out by another outfit a few years back. They used to rent space from me at the mini storage for document storage.
     
  10. AllieVi

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    Thanks for the update.
     
  11. John Corn

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    :lol: I knew that was coming! :lol:

    Most people I work with are taking the 3 yr with the cheaper rate. As I look back over the last 5 yrs the longer term slightly higer rate has been the cheaper in the long run.
     
  12. bruzer1

    bruzer1 New Member

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    If I were you I would go with the five year, I work in the natural gas industry and I don't see it getting any cheaper, but that is the chance that you take if it would.
     
  13. SimpleSimon

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    I have no clue if those prices are good or not (I'm a propane user), but I agree that we're NOT going to see any significant (or even minor) decline in the costs of ANY hydrocarbon fuels.
     
  14. JohnGfun

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    Natural Gas Prices Are High! In the winter my gas bill can be anywhere between $300-$400 per month! :eek2:
     
  15. Ray_Clum

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    Yeah, me too, but I figure that walking around with a pipe coming out of my rear would be too painful and too distracting to those around me... that's why my house is all electric...
    :hurah:
     
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