What is the difference in Propane and Natural gas?

[Escort Rider]

Originally Posted by thecoalman

Natural gas is really cheap now. I've known people with larger homes that had 600 to $800 monthly bills when it was higher.

In Los Angeles, natural gas has always been cheap, going back to at least 1971. My natural gas bills have just steadily risen with inflation from about $5 per month in the 1970's to about $10 per month now. In inflation-adjusted terms, yes, they are probably cheaper now, but not greatly so. What I find surprising about natural gas costs is their stability over a 40-year span. That is, no real ups and downs such as with gasoline, at least in Los Angeles.

Why do you say the low cost (and I agree it is low - amazingly so - but it has always been) will not last? Is demand for gas becoming higher in relation to other fuels? Is supply being manipulated by suppliers such as Russia? Or has the low-hanging fruit already been picked in terms of extraction in similar fashion to crude oil?

[texdav]

I wouold say it will raise as we are importing more and more LNG gas. Its like all natural produces that are in more demand as thrird worl counties come more into the market. Supply and demand;simple.

[thecoalman]

Originally Posted by Escort Rider

Why do you say the low cost (and I agree it is low - amazingly so - but it has always been) will not last? Is demand for gas becoming higher in relation to other fuels?

Looking at prices it appears California is bucking the trend and it's well below the national average:

Average Residential Price


The national average in 2009 was about $12 per 1000 cubic foot or about double the cost ending the previous decade:

U.S. Price of Natural Gas Delivered to Residential Consumers (Dollars per Thousand Cubic Feet)




The collapse of the economy killed this swing upwards. I believe demand for it will keep going up, there is still many people in the Northeast heating with fuel oil/electric and natural gas certainly provides a cheaper alternative. The one good thing about NG is we have plentiful supply right here.

Or has the low-hanging fruit already been picked in terms of extraction in similar fashion to crude oil?

The natural gas extraction industry is really starting to pick up here in the US, I'm right near where the Marcellus shale is. The gas companies are everywhere just north of where I'm at. The concern is the technique they use to extract it, it's called "fracking". Basically they drill into the shale then use a water/chemical mixture to fracture it so the gas can escape. These are all very rural areas they are in and everyone gets their water from wells.

[HighPlainsDrifter73]

I just got my mobile home setup in western North Dakota and opted for an all electric home. This made the mobile home cheaper by $600. Also, the electric coop that serves my location charges 3.8 cents per kwh for electric heat and 4.2 cents per kwh for air conditioning. Natural gas isn't available as this is a rural area.

Propane is widely used, but from the comparisons I've read propane would have to be at 94 cents per gallon to give the equivalent heating costs at 3.8 cents per kwh of electric. I don't believe propane is anywhere close to this price at the retail level.

I know that the vast majority of the electric generated in North Dakota comes from coal so this likely explains why electric rates are this cheap. The electric coop is really pushing electric heat and constantly brags about the cheap rates. I'm hoping to build a barn in 2011 and plan on having heat inside (likely radiant floor heat). The coop will still give me the same 3.8 cents for the barn as well.

With electric heat at 3.8 cents/kwh, did I make the right financial decision? Thoughts? Would electric heat be the right way to heat the barn also?

[Whatsthenews]

Originally Posted by M3 Mitch

Probably there in TN you will find propane so expensive that electric is a better deal. A heat pump rather than resistance heat is more efficient but of course the capital costs are more.

How about a wood stove?

Escort Rider is right, natural gas is cheap (right now) but propane is expensive.

I like gas because you can have a furnace.
Heat pumps seem to be very expensive when it's cold and they work off the back up heat virtually all the time.
Some of the new gas furnaces are over 90% efficient.
Would hate to have baseboard heaters more than I hate ducted air.
My ideal would be hydronic underfloor if I was building my own house, but radiators are preferable to ducted air or baseboard heaters.