The cost of energy, in all its many forms, has been on a decades long upward spiral that will continue to be the trend for the reasonably foreseeable future, and most likely, beyond. When it comes to rising energy costs, the list of contributing factors is long, and the nature of each influence is often more complex than the easily understood concept of supply and demand. Market speculation, currency exchange rates, unfavorable exploration environments, new regulatory restrictions, etc., are but a few of the factors that can contribute to an energy industry scenario within which natural gas prices will continue to rise.
While natural gas prices are affected by many of the same influences that work to increase the cost of foreign oil, natural gas is nearly wholly immune from various political and social upheavals that can cause dramatic spikes in the cost of Middle East crude. With the exception of some natural gas imports from Canada, America enjoys a domestically produced supply of this efficient and clean burning fuel. Most of the natural gas produced in this country comes from drilling fields in the Gulf states and the Rocky Mountain regions, and while one might think these domestic sources would insulate natural gas from the often volatile foreign crude oil market pricing, this isn’t the case at all.
The rising cost of crude oil affects every segment of the American and worldwide economy and the various industries within them, and the natural gas industry is no exception. The discovery, production, and distribution of natural gas requires an energy intensive series of procedures that rely primarily on crude oil, and whether this oil is produced domestically or is obtained from foreign sources, the end result is the same. It takes energy in to get energy out and the rising price of natural gas, in many instances, can be tied directly to the ever spiraling cost of oil. With natural gas, however, due to recent technological advancements in the compression and transportation of the fuel, there is some hope that these innovations might slow the significant price increases of the past.
NEOgas is a Texas based corporation that was established in 2001, and since the company’s inception it has sought to be an innovator and technological leader in the CNG industry. The company’s initial and ongoing commitment to develop new techniques, machinery, and technologies has led to significant cost reductions for its CNG operations, which positions NEOgas to become a leader in the CNG industry today, as well as to assure the company a preeminent standing in the natural gas business of tomorrow.