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Convert to Natural Gas

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Convert to Natural Gas

Currently in America there are two main items that are always on the minds of the people. The first of which is the state of the economy, and how long will it take to get out of this recession. The second is finding an alternate source of energy besides oil. This can be seen in the rate at which hybrid cars are popping up on the market. Natural gas, which is abundant in America, may very well be the answer to both.
The law of demand states that as the price of the good increases the quantity demanded of the good decreases. The law of supply states that as the price of the good increases, the quantity supplied of the good increases. Energy however is one of the exceptions to both of these rules. Oil and fossil fuels have a relatively high demand worldwide yet the prices are still at all-time highs. Natural gas on the other hand is at a low is cost with a high supply.

While the amount of oil produced has had a slight increase recently, thanks to new technologies, it has only been enough to keep up with the rise in demand. The fact that the oil market is a global one, along with the political control over most of the world’s oil pockets continues to have the price of oil at a fairly high price. Unfortunately it will most likely stay this way. A gain made in improving the supply production of oil takes years of research. Just like oil, natural gas shows itself to be an exception to the laws of supply and demand. Unlike oil, natural gas is a continental only market due to the difficulty of transporting it. Currently in North America the supply far exceeds the demand. The cost however is about one-eighth of that of oil. This trend is expected to continue into the near future, causing many energy consumers to switch from coal to natural gas. As electric plants switch from coal to natural gas there are a few things that

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