How is Natural Gas formed? Natural gas is formed from the decomposition of organisms such as plants, animals and multi cell bacteria. Over hundreds of millions of years, this layer of organic matter mixes with sand and silt. It is then exposed to intense heat and pressure under the Earth’s surface. Over time this causes …
The NYMEX, which we heavily refer to in most if not all of our blog posts, refers to the New York Mercantile Exchange. This is essentially the equivalent of the Toronto Stock Exchange (TSX), only opposed to being a public market place for stocks, it’s a public market place for commodity products such as natural …
Similar to any market, the fine balance of supply and demand drives the movement of natural gas prices. Studying the supply and demand curves, when the quantity demanded is equal to the quantity supplied, the market reaches its equilibrium price point. When the quantity demanded in the marketplace exceeds the quantity supplied, the price of …
Determining Price: The Laws of Supply and Demand Read More »
Natural gas, often coined as one of the cleanest, safest, and most useful of all energy sources, is a colourless, shapeless, and odourless gas in its pure form. Natural gas utilized in homes for heating (among other purposes), is almost purely methane (one carbon and four hydrogen atoms, CH4), referred to as “dry” natural gas. …