Natural gas per therm average price The national average price per thousand cubic feet in January 2020 was $9.52. That works out to $0.95 per CCF. It’s a natural gas therm price of $0.92 based on the national average heat content of 1,037 Btu per cubic foot in 2019.
What is the cost of 100 cubic feet of gas?
Natural gas can be priced in dollars per therm, dollars per MMBtu, or dollars per cubic foot in the United States.
1 To translate these costs from one price basis to another, the heat content of natural gas per physical unit (such as Btu per cubic foot) is required. The annual average heat content of natural gas provided to consumers in the United States in 2020 was around 1,037 Btu per cubic foot. As a result, 100 Ccf of natural gas equals 103,700 Btu, or 1.037 therms. A thousand cubic feet (Mcf) of natural gas equals 1.037 million British thermal units (MBtu), or 10.37 therms.
These calculations can be used to convert natural gas prices from one pricing basis to another (assuming a heat content of 1,037 Btu per cubic foot):
Natural gas heat content varies by location and type of natural gas customer, as well as with time. For information on the heat content of the natural gas they supply to their clients, consumers and analysts should contact natural gas distribution firms or natural gas suppliers. Customers’ invoices may include this information from some natural gas distribution providers or utilities.
1 Natural gas was measured in cubic feet by the US Energy Information Administration from 1964 to 1964 at a pressure of 14.65 psia (poundspersquareinchabsolute) at 60 degrees Fahrenheit. Since 1965, the pressurebase has been 14.73 psia at 60 degrees Fahrenheit.
What is the definition of a cubic foot of natural gas?
At a certain temperature and pressure, a cubic foot of natural gas is the amount of gas that can be contained in a cube one foot on a side. However, gas is not produced on a large scale “Temperature and pressure are “standard.” The amount of gas that may be held in a one-foot cube is affected by temperature and pressure. The more gas that can be trapped in a cubic foot of space, the higher the pressure. Conversely, when the temperature rises, the amount of gas that can be trapped in a cubic foot of space decreases. As a result, when a gas is measured, it must also be measured in terms of pressure and temperature. The volume of the gas at its current temperature and pressure can then be rectified to indicate the volume of the same gas at a standard temperature and pressure. The volume provided by producers to the Texas Railroad Commission at standard temperature and pressure is also the volume utilized to calculate the price the purchaser will pay for the gas.
When measuring volume, another factor to consider is the amount of water present. When most gas is created, some water vapor is dissolved in it. Water vapor takes up a lot of room. As a result, gas containing a lot of water vapor has less natural gas per unit volume than gas containing no water vapor. “There is no water vapor in “dry gas.” “Water vapor is present in “wet gas.” “The highest amount of water vapor that may be held in a gas without precipitating out as liquid water is called a “saturated gas.” As a result, measured gas volumes must be corrected for the presence of water vapor.
Technically, gas measurement is a well developed science. Gas meters do not directly measure volume. An orifice plate is a plate having a small hole in it through which the gas must travel in a gas meter. The pressure on either side of the orifice is measured by the meter. The volume of gas going through the aperture can be calculated using the pressure differential (the difference in pressure on either side of the orifice).
Gas is sold based on its heating value rather than its volume. British thermal units, or Btu’s, are used to measure the amount of heat in a room. At one atmosphere of pressure, a Btu is the amount of heat necessary to raise one pound of water one degree Fahrenheit. The calorie equivalent of a Btu is 251.99 Btu.
We’ll have to go back to high school chemistry for this. Methane makes up the majority of natural gas. CH4 is the chemical formula for methane, a hydrocarbon molecule with one carbon atom and four hydrogen atoms. However, natural gas may contain ethane (C2H6), propane (C3H8), butane (C4H10), and other hydrocarbons as it is created “hydrocarbons that are “heavier.” For the same amount of volume, heavier hydrocarbons have a higher heating value a higher Btu content.
At standard temperature and pressure (60 degrees Fahrenheit and 14.73 pounds per square inch), one cubic foot of methane gas contains exactly 1,000 Btus. One million Btus, or one MMBtu, is contained in one thousand cubic feet of methane, or 1 mcf. The MMBtu unit of measurement is used to price gas. Gas sold at $5 per MMBtu would be $5 per mcf if it was purely methane.
Natural gas, on the other hand, is frequently a mixture of methane, ethane, propane, and other hydrocarbons, thus its Btu content can easily reach 1,000 Btus per cubic foot. Because natural gas is sold in MMBtu units, it is necessary to determine not just its volume but also its Btu composition. The Btu content of gas is determined by obtaining a sample and analyzing it to identify its hydrocarbon elements. Because the hydrocarbon content of gas from a specific well does not fluctuate significantly over time, this is done once or twice a year for each well. “Natural gas that is “rich” in Btu concentration can have as much as 1,200 Btu per cubic foot or more. Carbon dioxide, hydrogen sulfide, and other gases may be present in natural gas, lowering its heating value to less than 1,000 Btus per cubic foot.
MMBtus/mcf is the standard unit of measurement for gas Btu content. The Btu content of gas with a Btu content of 1,200 Btu per cubic foot is 1.2 MMBtus/mcf.
The volume of a gas can readily be converted to Btus once the heating value has been determined. If a well produces 100,000 mcf of gas with a heating value of 1,200 Btu per cubi foot, the total MMBtu’s of gas produced is calculated by multiplying mcf by MMBtu’s/mcf: 100,000 X 1.2 = 120,000 MMBtus.
A barrel of oil, for example, has around 5.8 MMBtus (depending on the constituency of the oil). As a result, a barrel of oil is about equivalent to 5.8 mcf of methane in terms of heating value. When firms report production or reserves in “barrels of oil equivalent,” or “boe,” they are converting their gas reserves into oil barrels at a 5.8-to-1 ratio. Methane is now significantly cheaper than oil based on its heating value. Oil would sell for $20.30 per barrel on a Btu-equivalent basis at the present price of natural gas, which is around $3.50 per mcf.
Even though the actual pricing is based on Btus, exploration companies must record their natural gas production in mcf on royalty checks. To determine the price per MMBtu, you must first determine the gas’s Btu content. Some businesses provide this data in their check details. If the information isn’t available, the corporation should supply it if asked. Without knowing the Btu content of the gas being produced, it is impossible to compare pricing between companies and wells.
What is the cost of a unit of gas?
The amount of gas consumed at a property is measured in units of gas. One kilowatt hour (kWh) of gas utilized equals one unit of gas. It’s vital to note that your gas meter doesn’t directly reflect how many units you’re consuming; instead, depending on the type of meter you have, it measures the amount of gas used by volume in Cubic Meters (m3) or Cubic Feet (ft3). Your energy provider converts this to Units (kWh’s) on your gas bill. You’ll be charged in pence per kWh (unit) of gas used after that.
Who has the most affordable natural gas?
Natural gas prices in Utah are the cheapest, at $9.12 per 1,000 cubic feet. That’s approximately 8% less than second-placed Montana. For the month, the average rate was $17.57.
What is the current price of natural gas?
The Henry Hub Natural Gas Spot Price is a unit of measurement for the price of 1 million Btu of natural gas in US dollars. When there was a major scarcity of natural gas in February of 2003, the price of natural gas skyrocketed. Within a month, the price of natural gas jumped from $5.58 to $18.48.
The Henry Hub Natural Gas Spot Price is now at $8.87, up from $8.16 the previous market day and $2.78 a year ago.
This is an increase of 8.70 percent from the previous trading day and a year ago of 219.1 percent.
What is the source of natural gas’s high cost?
The spring is the best time for natural gas companies to store gas in anticipation of the upcoming cold months, which are still two seasons away. But that hasn’t happened, in part due to rising international demand and concerns about further global energy supply constraints.
As a result, there is currently less gas in storage than usual, with current storage at 1.567 trillion cubic feet, or roughly 16% below the five-year supply average.
A cubic foot of natural gas contains how many gallons?
“PROPANE” refers to a gaseous paraffin hydrocarbon that turns liquid under pressure or at low temperatures, which is found naturally in crude petroleum and natural gas and can also be created by cracking, in either gaseous or liquid form.
INFORMATION ON COMPRESSED PROPANE (GASEOUS FORM) EQUIVALENCE: At 60 degrees Fahrenheit and 14.73 pounds per square inch (psi),
“NATURAL GAS” refers to naturally occurring mixes of hydrocarbon gases and vapors, primarily methane, in both gaseous and liquid form.
INFORMATION ON NATURAL GAS (GASEOUS FORM) EQUIVALENCE: At 60 degrees Fahrenheit and 14.73 pounds per square inch (psi),
The amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit is measured in “British Thermal Units” (Btu).
The amount of gas occupying a cubic foot of space at a pressure of 30 inches of mercury (about 14.7 psi) and a temperature of 60 degrees Fahrenheit is defined as a “cubic foot,” which is a standard unit of gas measurement.
A gallon is a unit of volume that equals 231 cubic inches. It refers to a gallon of liquid natural gas or other liquid fuels at a temperature of 60 degrees Fahrenheit when employed as a standard unit of measure.
To convert liters to gallons, multiply the number of liters by 0.26417 to get the equal quantity in gallons.
When temperature and pressure corrections are required (e.g., when motor vehicle fuels are not tested at 14.73 psi or 60 degrees Fahrenheit), consult the National Institute of Standards and Technology Handbook No. 44 (1991).
A BTU of natural gas equals how many cubic feet?
British Thermal Units, or BTUs for short, are used by scientists to measure heat value. The amount of energy required to raise one pound of water one degree Fahrenheit is measured in BTUs. It’s the same temperature as a birthday candle flame.
- Each cubic foot of natural gas contains 1,030 BTUs. One gallon of oil has a heat content of 135 cubic feet.
- Each gallon of kerosene contains 131,890 BTUs. One gallon of oil has a heat content of 1.05 gallons.
- Propane has a BTU content of 91,500 per gallon. One gallon of oil produces 1.52 gallons of heat.
- A kilowatt hour of electricity contains 3,413 BTUs (kwh). One gallon of oil has a heat content of 40.6kwh.
- Anthracite coal has a BTU content of 12,000 per pound. One gallon of oil has a heat content of about 12 pounds.
Remember to include any taxes, meter or service charges that the gas or electric companies apply to the bill when comparing unit costs for the various fuels.
Knowing the Cost to Convert from Oil to Gas
Consider the expense of switching from oil to gas before making your selection! There are a number of factors that influence the cost of a conversion, including:
Additionally, here are some things we want our customers to know before making the move from oil to gas:
- According to the US Department of Energy, the US has only 4% of the world’s natural gas reserves, with the remaining 73% concentrated in Russia, Eurasia, and the Middle East.
- According to the international group Methane to Markets, natural gas system losses account for 18 percent of total global methane emissions.
- Fuel conversion, according to the Consumer Energy Council of America, is a “expensive gamble,” and instead of switching fuels, households should modify their oil equipment to accomplish conservation. Conversion is more expensive than updating, and the chances of significant savings are slim.
- Natural gas is highly flammable, and leaks can be quite dangerous. Natural gas heating systems are also the major source of carbon monoxide deaths that are not caused by fire.
- In most cases, neither preventive maintenance nor emergency service are provided by gas utilities. As a result, gas users may be squandering fuel by using improperly tuned equipment, and they may be without aid in the event of a power outage.