Historically low natural gas prices mark opportunity for fixed-rate advantages

Summitt Energy offers consumers options to lock-in low

MISSISSAUGA, ON, Jan. 27, 2012 /CNW/ - This heating season we are seeing natural gas prices at 10-year lows. Due to a combination of several factors; including over production and warm weather this winter season, a decline in natural gas demand has left it cheap and readily available. With less demand and high availability, the cost of natural gas has decreased. It is during these periods where a fixed-rate price plan becomes advantageous, before corrective action is taken to start driving prices back up. The decrease in prices has resulted in drilling companies announcing cut-backs in production; at least until natural gas pricing rebounds, to allow for higher output to be more cost-effective. These actions typically contribute to the increase in natural gas prices. As natural gas drilling is reduced, the less available it will become - putting pressure on pricing once again.

Read More

It’s time to lock in a natural gas price

The Globe and Mail
Monday, January 23, 2012
Rob Carrick

The same events that have rocked the financial world are also presenting opportunities for us to exert some control over the cost of living.

Natural gas prices are a good example. They’ve hit 10-year lows recently thanks mainly to a combination of new production coming on stream, a warm winter and a decline in demand related to global economic weakness. Unless you think we’re headed toward a lengthy recession that will keep the price of commodities low indefinitely, now’s a good time to lock in a natural gas price for the next five years at a very attractive rate.

One of the most disturbing things about the past few years is how vulnerable we’ve all become to financial events that are far removed from our everyday existence. The developments themselves are shocking, but so is the feeling of having no control over our lives.

Compare lock-in rates for natural gas on the Energyshop website or by Googling “natural gas contracts.” Prices vary by a surprising degree, which raises the question of whether there’s any risk in going with the lowest-cost firm.

“There’s no risk in signing up with the lowest cost provider, even if you haven’t heard of them,” Mr. MacLellan said. He argues that if your supplier goes bankrupt, its contracts would be bought by a competitor.

Read More

Don’t blame the politicians, Canadians killed Kyoto

The Globe and Mail
December 13, 2011

...There is no point in blaming politicians for Canada’s spectacular failure to meet its Kyoto obligations to reduce greenhouse gas emissions (GGE).

They were simply carrying out the mandate we gave them.

Notwithstanding economically illiterate attempts to pretend otherwise, higher consumer prices for GHG-emitting goods and services are an essential component of any serious attempt to reduce emissions. Counting on people to reduce GGE emissions out of the goodness of their hearts was the strategy of the Chrétien-Martin Liberal governments, and adopting this policy made Canada’s Kyoto failure inevitable long before Stephen Harper’s Conservatives came to power.

It doesn’t matter what Canadians tell pollsters about how much they are concerned with climate change; what matters is the choices we make. And whenever we have been offered the choice of accepting personal inconvenience in order to reduce greenhouse gas emissions or of making sure that fossil fuels are cheap and plentiful, we have consistently and overwhelmingly chosen the latter.

Read More