Morningstar, an independent investment research and management company, is fresh out with a report titled, “Northeastern Winter Gas Outlook.” In the report, analysts take a look at the demand for natural gas by the northeast, in particular demand by New York City. What do they find? Although infrastructure (pipelines) have improved a somewhat in the last year, bringing more gas to the northeast (largely from the Marcellus), more needs to be done. Natural gas is very sensitive to supply and demand. The report states that in the past year alone over 1,000 buildings in New York City–apartment buildings and office buildings–have switched from fuel oil to natural gas for heating. That means there’s a lot more demand this winter than last–at least another 100 million cubic feet per day. If we get another extended cold snap, natural gas prices will go a lot higher in NYC…
