Natural gas prices rising

End-use prices for natural gas in 2001 were well above those of 2000, even though the national average wellhead price generally fell throughout the year. The average wellhead price began increasing in late 2000 and reached $8.06 per thousand cubic feet in January 2001 (Table 4). The wellhead price generally declined throughout the rest of the year, falling to $2.40 per thousand cubic feet in October 2001 before rising to $2.74 per thousand cubic feet in November. However, prices remained well above those of 2000, especially early in the year. The cumulative average wellhead price for January through November 2001 is estimated to have been $4.27 per thousand cubic feet, 22 percent higher than in 2000. End-use prices (1) reflect this higher average level. Residential and commercial prices for natural gas for January through September 2001 were 40 and 43 percent higher, respectively, than in 2000. The average industrial price, also through September, and the average electric utility price, through August, were 38 and 36 percent higher, respectively, than for the same periods in 2000.

(1.) End-use prices in the residential, commercial, and industrial sectors are for onsystem gas sales only. While monthly onsystem sales are nearly 100 percent of residential deliveries, in 2001, they averaged 63 percent of commercial deliveries and only 15 percent of industrial deliveries (Table 4).