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  • U.S. Natural Gas Development Has Saved Consumers Lots of Money

U.S. Natural Gas Development Has Saved Consumers Lots of Money

By Richard Smead

Various stories in the print media have continued to support a pretty confrontational relationship between producers who want to develop new shale production and sectors of the public who see it as an “us against them” issue.

In the course of the New Jersey deliberations, Navigant quantified the consumer savings in the state that had resulted from the industry’s transformation from a scarce, declining resource to long-term abundance. We showed that during a recent 12-month period, gas consumers saved over $1.2 billion as compared with what they would have paid based on the three years prior to abundance taking hold. For the average residential gas customer, this was a savings of $132 a year, or 11 percent of their gas bill. Additionally, because of lower gas prices to power generators, the average electric customer saved $54 a year.

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Richard G. Smead

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