Natural Gas Prices: the Impact of Speculative Greed

In its most recent analysis, Energy Solutions, Inc. identifies the how and why of today’s high natural gas prices, plus the shake-out that will happen when prices return to more reasonable price levels.

Verona, WI, June 12, 2008 --(PR.com)-- There is substantial talk about price manipulation in commodity markets but if each transaction involves one buyer and one seller, there should be an inherent protection against price manipulation — right? But what if the interests of certain buyers and sellers somehow align? While that seems like an absurd scenario, in its most recent analysis, Natural Gas Prices: The Impact of Speculative Greed, Energy Solutions, Inc. addresses how that has occurred and what it means to rising natural gas prices.

“Supply benefits of robust growth in natural gas production, strong hydro-power, and improving storage injections balanced against a potential for a decline in natural gas demand due to economic concerns are being overshadowed by greed,” said Valerie Wood, President of Energy Solutions, Inc. “Unfortunately, the uncertainties surrounding hurricane season, hotter weather, and record crude oil prices, create a favorable price environment for speculators to drive natural gas prices even higher. The bubble will inevitably burst, but it may take longer for that to happen than many anticipated. Businesses and consumers don’t like today’s prices, but with irrational markets, there’s no calling the top, so businesses need to have a plan on how to survive in the interim,” said Wood.

Natural Gas Prices: The Impact of Speculative Greed is an easy-to-read analysis designed to help commercial and industrial users of natural gas better understand why natural gas prices have reached 2-1/2 year highs and what market forces are necessary to return natural gas prices to more ‘reasonable’ price levels for natural gas buyers. “Of course, with natural gas prices holding easily in the double digits, the definition of ‘reasonable’ may still not be that attractive to buyers,” said Wood.

To keep pace with the ongoing changes in the natural gas industry, through The Advisor, a monthly and weekly publication, and tailored consulting, Energy Solutions, Inc. provides timely information on market conditions, as well as recommendations on when and how much natural gas a business should consider purchasing for their heating and manufacturing needs. "Natural gas price rallies are a very stressful time for individuals who are responsible for their company's natural gas needs. While we can’t change current price levels, we can make this difficult time more manageable and understandable by helping individuals gain the peace of mind that the right decisions are being made for their company. Remember, knowledge is power," said Wood.

For a complimentary copy of Natural Gas Prices: The Impact of Speculative Greed or to sign up for a one-month free trial to The Advisor, a publication specifically designed for businesses, call (608) 848-6255, send your request to request@energysolutionsinc.com or go directly to www.energysolutionsinc.com.

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About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 years of experience in the natural gas industry, their team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
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Energy Solutions, Inc.
Valerie Wood
608-848-6255
www.energysolutionsinc.com
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