The Rise of Natural Gas
Due to the recent popularization of the hydraulic fracturing method of extracting oil and natural gas from rock, known colloquially as “fracking”, natural gas prices have plummeted and it has quickly replaced coal as power plants’ main method of producing electricity. Despite the gloomy outlook on the United States’ oil supplies in past decades, fracking has led to record domestic oil and gas protection in the US (it’s highest mark since 1992) and has many observers predicting imminent US energy independence. In 2013, the United States met 87% of its own energy needs, which is the highest level since 1986, showing the true influence of the natural gas explosion (metaphorical explosion). Just a few years ago, natural gas was looking like it was to become marginalized in a world heading towards renewable energy, yet the huge surplus and subsequent price drop has re-energized the demand for natural gas.
Increasing Demand For Florida Natural Gas Suppliers
The government agency in charge of energy statistics, the US Energy Information Administration has reported that the national demand for natural gas increased 21.4% from January 2013 to May 2013. The demand is likely to continue the price of natural gas continues to decrease, especially for the manufacturing sectors and companies in states that have deregulated natural gas laws like Florida have an advantage as they can sell energy for much lower rates than usual. One such company, Mirobito Gas in Florida purports that they can save users, residential and consumer, up to 30% from the average provider. Florida has benefited in particular from these deregulation laws as the recent boon in production has led to the construction of multiple pipelines across the state, making distribution a much cheaper task.
The system of deregulation in Florida and other states is a result of the breakup of certain utility companies that were ruled to have a monopoly. Since that breakup, consumers in Florida have been given the option to choose their natural gas provider, creating a very competitive energy market that has driven costs down drastically. Mirabito allows users to bypass specific federal taxes and fees, making the already depressed price of natural gas and electricity lower even further.
The need for natural gas continues to rise in the short term as the United States is currently experiencing warmer than usual weather, increasing energy demand, yet the overall demand for gas is clearly on the rise and the profit margins of natural gas providers is likely to increase as well.