![Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (1)](https://cdn.statically.io/img/www.electricrate.com/f=auto//wp-content/uploads/2021/07/natural-gas-pricing-mechanism-1024x723.jpg "Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (1)")
Most households love natural gas – it’s cheaper than electricity, more environment-friendly, and produced right here in the United States. Natural gas already dominates our country as the top energy source for powering our daily lives.
However, when it comes to the cost of natural gas, things start getting a bit confusing. You will come acrossterms like cost per therm, cost per BTU, and CCF and you might find it hard to figure out what you are paying for. Let’s analyze it together.
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Natural Gas Cost per Therm
There are three different ways to talk about natural gas:
- HEAT – The amount of heat you need to increase the temperature of 1 pound of water 1 degree Fahrenheit is 1 Btu or British thermal unit
- VOLUME – The volume of natural gas is measured in Ccf, short for one hundred cubic feet (C is the Roman sign for 100)
- CONTENT – You get the content of natural gas per physical unit by combining the above values = Btu per cubic foot
In the United States, natural gas can be priced in units of dollars per therm, dollars per Btu, or dollars per cubic foot. You need to know the heat content of natural gas to convert these prices from one measure to another.
Here is an example: The U.S.average heat content of natural gaswas about 1,037 Btu per cubic foot in 2020. One therm is equal to 100,000 Btu, so 100 cubic feet (Ccf) of natural gas equals 103,700 Btu or 1.037 therms.
Factors Affecting Natural Gas Prices
The cost per therm varies significantly both by season and by location. Since natural gas is a non-renewable commodity, there is only a limited supply of it on Earth which meansthat natural gas rates are affected by available annual production, transport, and geopolitical issues.
World Market
The main predeterminer of natural gas price is the supply and demand in the world market. Gas is normally produced as biogas or is extracted from deep underground. The gas is purified (if needed) and stored in huge onshore containers and off short, or LNG or gas carriers and is sold worldwide. The USA is one of the countries lucky enough to have their own natural gas supply, but this country still buys a lot of it on the world market.
Transportation
Unlike electricity, natural gas usually has to travel long distances before it reaches your household. That’s why it is more expensive in Hawaii than in Idaho, Louisiana, and North Dakota.
Similarly to other commodities, supply and demand play a crucial role. When the demand for gas is high (in the winter and summer for heating and cooling), the average cost per therm is higher.
Regulations & Taxes
Apart from the aforementioned costs included in the price of natural gas, there will be other charges on your bill. These include local, city, and state taxes and a natural gas sales tax paid directly to the state.
Your state will likely have an energy efficiency program for natural gas, the cost of which will be passed on to you, the customer in the form of an energy-efficiency charge from your utility company.
Even after adding up all these price tags, the good news is that natural gas rates are consistently two to three times lower than average electric prices. What exactly is that actual price in the U.S.? Let’s find out.
Seasons
In 2020, natural gas was the single largest fuel source for electricity production in the USA, with around 40% participation in total electricity produced. Normally, as the demand for electricity rises in the winter and the summer, so do the prices of natural gas. In the winter, gas is used to supply heat energy, while in the summertime, it is used to produce electricity which then cools your home.
Seasons can also influence the price of natural gas in the sense that extreme weather events can cause gas pipelines to freeze since a part of the natural gas is water vapor. This water vapor can condense on the walls of the pipes and block them. This can reduce natural gas availability regionally and cause an increase in the price of natural gas.
Locations
Your location can also play a significant role in the price of natural gas you pay per thousand cubic feet. Namely, more remote areas pay a slightly higher price of gas since the transportation costs are higher. Likewise, the gas price is also higher in overseas areas, such as Hawaii, since the transportation is costly and easily disrupted.
In such remote areas, huge LNG or gas tanks are built to meet the peak energy and gas demand. These are very costly and take a lot of safety measures to function properly, which is another contributor to the gas price. Luckily, the huge containers are usually filled when the demand for gas is at its lowest, to ensure that the gas price stays stable over a longer period of time.
Average Cost for Residential Customers
According to the Energy Information Administration (EIA), the average U.S. price for natural gas to residential customers in April 2021 was $12.21 per thousand cubic feet. If you recall our previous calculations, that’s $1.22 per ccf (hundred cubic feet). At the heat content of 1,037 Btu per cubic foot, the natural gas therm price of $1.18.
Still with us? If you are still a bit lost, here is a little cheat sheet:
$ per Ccf divided by 1.037 equals $ per therm
Are the average U.S. natural gas prices going up or down? Since the 1990s, natural gas rates have fluctuated greatly (with a slight upward trend) due to weather, infrastructure, and other supply problems as you can see from the graph below. The notable peak in the price was in 2005 thanks to unusually active and destructive hurricane season.
States with the Cheapest Natural Gas
Some U.S. states have won the economic lottery and have access to cheap residential and business natural gas. Do you live in one of them? Let’s look at the top 10 states for the cheapest natural gas:
| State | Average Residential Price(in dollars/thousand cubic feet) |
|---|---|
| Alaska | $4.68 |
| Utah | $7.60 |
| Washington | $7.65 |
| Colorado | $7.74 |
| Wyoming | $7.77 |
| Michigan | $7.80 |
| North Dakota | $8.10 |
| Nebraska | $8.19 |
| New Mexico | $8.54 |
| Idaho | $8.57 |
However, commercial customers need natural gas to keep their offices cool in summer and comfortably toasty in winter. Which 10 states have the lowest average commercial natural gas rates?
| State | Average Commercial Price(in dollars/thousand cubic feet) | ||
|---|---|---|---|
| Alaska | $4.42 | ||
| Utah | $6.40 | ||
| Wyoming | $6.58 | ||
| Washington | $6.78 | ||
| Colorado | $6.98 | ||
| Nebraska | $7.33 | ||
| New Mexico | $7.44 | ||
| North Dakota | $7.49 | ||
| Michigan | $7.52 | ||
| South Dakota | $7.66 |
Data from the Public Policy Institue of New York State
Methods to Reduce Your Natural Gas Consumption
Over47% of American homes use natural gasas their primary heat source. If you are among them, you are already using one of the most efficient methods of heating your home. However, that’s not much help when the below-zero temperatures hit and the natural gas bill shoots up.
Let’s look at some tips to lower your utility bill and save money on costs:
![Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (3)](https://cdn.statically.io/img/www.electricrate.com/f=auto//wp-content/uploads/2021/07/ways-to-reduce-natural-gas-bill-1024x591.png "Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (3)")
Sealing the Windows
Heat loss accounts for 10% to 25% of your total monthly bill, so next time you are doing a DIY home audit, check your window seals. You can buy commercially availableclear plastic filmfor a cheap way to stop air leaks.
Decrease Your Hot Water Temperature
If your water heater thermostat is set at 140ºF by default, you might be burning through $61 annually and face a safety hazard—scalding.Reducing your water heater temperature to 120ºFwill not only save you moneybut will slow mineral buildup and corrosion in your water heater and pipes.
Dress for the Weather
Feel cold? Put on an extra layer before you reach for the thermostat. This might not only be good for your wallet, but your health too as keeping the central heating on all day can dry your skin and cause eye irritation.
Provide Insulation to your Water Tank
When on standby,your uninsulated water tank is responsible for 25%–45% energy losses. One of the clever and surprisingly cheap ways to save money and energy is buying a tank jacket or blanket from your hardware store (approx. $20) andwatching this simple DIY guideto insulating your tank.
Use Your Fireplace Sparingly
Almost all the heat (89%) produced in your fireplace goes out the chimney, drawing cold air in through leaks in your home’s exterior walls and windows. Consider investing in anatural gas-fired stove instead.
Lock-In Your Natural Gas Rates
Seasonal changes greatly impact natural gas prices. You might recall the record cold snap from February 2021, resulting in market prices skyrocketing by as much as 200 percent. When you lock your natural gas rate, you will pay the same rate per therm for the duration of your contract.
The Benefits of Natural Gas Vs. Other Fossil Fuel
In terms of price, natural gas might be the preferred energy choice of customers who search for an efficient way to heat their homes. What other value-add aspects does it offer that other energy sources don’t?
![Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (4)](https://cdn.statically.io/img/www.electricrate.com/f=auto//wp-content/uploads/2021/07/cost-of-natural-gas-per-kg-300x300.png "Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (4)") | It's greener - While not as clean as solar or wind energy, it is the cleanest fossil fuel energy source available. Natural gas produces nearly a third less carbon dioxide than coal and almost half less than oil when burned. |
![Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (5)](https://cdn.statically.io/img/www.electricrate.com/f=auto//wp-content/uploads/2021/07/natural-gas-prices-forecast-300x300.png "Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (5)") | It's dependable - Natural gas is delivered through an underground pipeline, keeping its supply safe from the effects of heavy storms and extreme weather conditions.That's an advantage compared to electric supply with power outages relatively common during storms and other weather events. |
![Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (6)](https://cdn.statically.io/img/www.electricrate.com/f=auto//wp-content/uploads/2021/07/natural-gas-prices-by-country-300x300.png "Residential Cost of Natural Gas 2022 [Prices per Therm/Ccf] (6)") | It's a domestic source - According to data from FNGA, over 97% of the natural gas used domestically is produced in North America, adding 35,000 jobs are created for every 1% of increased production. (Video) The Impact of Rising Natural Gas Prices |
FAQ
What is the price per gallon of natural gas?
We tend to talk about the cost of natural gas in price per thousand cubic feet or price per therm. One thousand cubic feet equals approximately 11.20 gallons, so if the average U.S. residential natural gas price is $12.21per thousand cubic feet, natural gas would cost $1.1 per gallon.
Is natural gas cheaper than oil?
According to EIA, propane— sometimes known as liquefied petroleum gas costs$2.41 per gallon. We know that the average U.S. residential natural gas price is $12.21per 1000 cubic feet. How does that compare to petroleum? One thousand cubic feet equals approximately 11.20 gallons of propane so converting it to the same unit, natural gas would cost $1.1 per gallon, roughly half of the price of oil.
What is cheaper to heat with gas or electric?
According to the EIA, households who will heat primarily with natural gas will spend about half ($572) the money that households who use electric power ($1,209). Apart from cost, natural gas emits almost 50% less carbon dioxide than coal, making it the greener choice too.
Is propane cheaper than gas?
Propane isusually more expensive than natural gas, although its heat content (how much heat the same amount of fuel produces) is higher. For comparison, propane or liquefied petroleum gas costs$2.41 per gallon while natural gas would cost only $1.1 per gallon. However, you also need twice as much natural gas as propane to heat two spaces of the same size. If you factor that in, their cost would be about the same.
Natural Gas, Powering The Future
Natural gas is the United States’ chief energy source, producing 34% of the country’s electricity and 48% of our heating. Whether you use it in your home or a business, hopefully, you now understand not only how to calculate your cost per therm and how to reduce your annual bill, but you can also roll off your tongue a few benefits of natural gas over other sources.
Updated on
FAQs
How many CCF are in a therm of natural gas? ›
In 2020, the U.S. annual average heat content of natural gas delivered to consumers was about 1,037 Btu per cubic foot. Therefore, 100 cubic feet (Ccf) of natural gas equals 103,700 Btu, or 1.037 therms. One thousand cubic feet (Mcf) of natural gas equals 1.037 MMBtu, or 10.37 therms.
What is the cost of 1 therm of gas? ›The cost of natural gas per therm can vary depending on location and other factors. The average natural gas cost per therm is $0.95 or $9.52 per thousand cubic feet. One therm is equal to 100 cubic feet of natural gas.
How much is natural gas per 1000 cubic feet? ›| Characteristic | Price in U.S. dollars per thousand cubic feet* |
|---|---|
| 2020 | 10.78 |
| 2019 | 10.51 |
| 2018 | 10.5 |
| 2017 | 10.91 |
Ccf: The most common unit of measurement applied to natural gas usage. This measurement represents a unit of volume equal to one hundred cubic feet. Therm: This measurement is equivalent to one hundred cubic feet or 1 Ccf. Mcf: A unit of volume equal to one thousand cubic feet.
What is the current price of natural gas? ›The prices shown are in U.S. dollars. The current price of natural gas as of September 27, 2022 is $6.83.
How many therms of gas per month is normal? ›There is no definitive answer to this question as it depends on a number of factors, such as the size of the home, the number of people living in the home, the climate, and the appliances used. However, the U.S. Department of Energy estimates that the average U.S. household uses about 60-90 therms of gas per month.
Should I fix my energy prices until 2023? ›You should only fix your energy prices until 2023 if you can source a cheaper fixed tariff than that of the October 2022 price cap increase.
Which states have the highest natural gas prices? ›| State | May rate in dollars/thousand cubic feet) |
|---|---|
| Hawaii | 64.54 |
| South Carolina | 27.8 |
| North Carolina | 27.23 |
| Georgia | 26.73 |
The cheapest residential natural gas rates
Utah has the cheapest natural gas rates, coming in at $9.12 per 1,000 cubic feet. That's nearly 8 percent lower than No. 2 Montana. The average rate for the month was $17.57.
ANZ Research forecast the LNG spot price to average $40.7/MMBtu in 2022. The price of the super-chilled natural gas is expected to drop to $36.30 in 2023 and to $20.50 in 2024.
How many cubic feet of gas does a house use? ›
Natural Gas Customers
Natural gas serves nearly 66.7 million homes; 5.4 million businesses like hotels, restaurants, hospitals, schools and supermarkets; 192,000 factories; and 1,900 electric generating units. On a daily basis, the average U.S. home uses 196 cubic feet of natural gas.
The Energy Information Administration measures the U.S. annual average heat content of natural gas delivered to consumers at 1,037 British Thermal Units (BTU) per cubic foot (CF). So if you want the true conversion, it's that 100 cubic feet (1 CCF) of natural gas equals 103,700 Btu, or 1.037 therms.
What is CCF in measurement? ›A CCF is 748 gallons (one-hundred cubic-feet) of water. This is the unit of measure used on your water bill.
What does a cubic foot of natural gas cost? ›Average price of natural gas per therm
In January 2020, the national average price was $9.52 per thousand cubic feet. That's $0.95 per Ccf. And at the 2019 national average heat content of 1,037 Btu per cubic foot, it's a natural gas therm price of $0.92.
Multiply the m3 figure by a conversion factor of 1.02264, then by the calorific value. Calorific values vary; you should find this on your bill. Divide this figure by 3.6 to show your usage in kWh. Multiply your usage in kWh by your unit prices to work out your gas charge.
What was the closing cost of natural gas today? ›...
NG=F - Natural Gas Nov 22.
| Last Price | 6.874 |
|---|---|
| Day's Range | 6.705 - 7.044 |
| Volume | 91,998 |
| Ask | 6.842 |
Supply concerns
Too few pipelines are available to move the fuel due to high costs, lawsuits, and reduced investment from energy firms following the pandemic. In the U.S., natural gas inventory is typically built up over summer and fall and drawn down in winter and spring.
We expect the Henry Hub price to average about $9/MMBtu in 4Q22 and then fall to an average of about $6/MMBtu in 2023 as U.S. natural gas production rises.
How many therms does a hot shower use? ›Most people probably shower with water at about 105 degrees F. For this calculation, 100 degrees F is used which is fairly conservative. Converting British thermal units to therms for natural gas and kilowatthours for electricity: For the conventional shower head, 47.7 therms or 1,398 kilowatthours.
How do you calculate a therm? ›To calculate the therm factor for a billing period, add the weekly heating values shown for any date that falls within the billing period and divide by that number of heating values, then divide that number by 1000.
How many therms does a gas water heater use? ›
The most efficient conventional gas-fired storage water heaters are ENERGY STAR models with energy factors between 0.67 and 0.70, corresponding to estimated gas use of 214 to 230 therms/year.
Which is better fixed or variable energy rate? ›Fixed rate tariffs are often cheaper than variable rates, and the choice is wide because almost all suppliers offer them. Your supplier has to let you know when there are just 49 days of the deal remaining, and you can switch to another deal during this period without paying an exit fee.
Is variable energy better than fixed? ›Both have their merits. The cost of fixed price tariffs will depend on the conditions of the energy market. Fixed deals become less attractive if wholesale prices are high because suppliers have to charge more. Although a variable tariff may offer the cheapest prices at the outset, it might not in the future.
Will energy costs ever come down? ›Some estimates suggest that energy bills could remain high until 2024. It's difficult to know exactly when energy bills will go down, as international gas prices are continuing to fluctuate.
Is natural gas cheaper than electricity? ›On average, natural gas is cheaper than electricity, so a gas furnace will save money on your bills. Electrical furnaces often run quieter than gas furnaces, as they have less mechanical parts used for the conversion of fuel to heat. Electrical furnaces, by and large, are safer.
What was the highest gas price ever? ›Prior to 2022, the highest ever average recorded by AAA was $4.114 per gallon in July 2008. Average U.S. gas prices soared to a record high of $4.33 in March shortly after Russia invaded Ukraine, which caused crude oil prices to surge and threatened global supply.
What was the highest gas prices in US history? ›American drivers had it rough back in 1981. The average price of gasoline spiked to $1.353 a gallon that year — up from $1.221 in 1980 and more than double the price just three years earlier. Adjusted for inflation, the average price of gas in 1981 would have equaled $2.421 a gallon in 2020.
Where is natural gas most expensive? ›California has the most expensive gas in the nation, while Georgia has the cheapest. By Sharon Lurye and Elliott Davis Jr. By Sharon Lurye and Elliott Davis Jr. June 30, 2022, at 2:51 p.m.
Who sets the price for natural gas? ›Natural gas prices are mainly a function of market supply and demand. Because there are limited short-term alternatives to natural gas as a fuel for heating and electricity generation during periods of high demand, changes in supply or demand over a short period may result in large price changes.
Is propane better than natural gas? ›Propane delivers more BTUs (per gallon or per cubic foot), burns less volume per hour than natural gas by a factor of two-to-one and this makes it an energy-efficient alternative to natural gas for many applications.
Should I lock in natural gas rate? ›
Should you lock in your natural gas rate now? Natural gas prices are changing all the time, but that doesn't mean your supply rate has to. If you lock in your natural gas price — especially during the colder months — you may be able to enjoy a lower and more stable supply rate that won't be affected by market prices.
Why is gas so expensive in 2022? ›High demand for crude oil and low supply pushed gas prices upward this year. And though the Federal Reserve has raised interest rates four times so far in 2022—and is planning on more raises in the near future to nudge prices down—there are other factors at play internationally.
Why are gas prices so high in the US 2022? ›The price of global crude is the main factor affecting retail gasoline prices so the price of West Texas Intermediate (WTI) crude prices, changes in U.S. production capacity and GDP, and global and domestic petroleum consumption patterns are most informative.
How much gas does a normal house use? ›| Gas and electricity usage | Average annual consumption |
|---|---|
| Low (flat or 1-bedroom house / 1-2 people) | Gas: 8,000 kWh Elec: 1,800 kWh |
| Medium (3-bedroom house / 2-3 people) | Gas: 12,000 kWh Elec: 2,900 kWh |
| High (5-bedroom house / 4-5 people) | Gas: 17,000 kWh Elec: 4,300 kWh |
| State | Daily gas consumption in winter (MJ/day) | Daily gas consumption in other seasons (MJ/day) |
|---|---|---|
| New South Wales | 32.47 | 23.16 |
| Victoria | 98.99 | 48.30 |
| South Australia | 21.64 | 15.14 |
| Tasmania | 208.53 | 79.76 |
Normal average values for gas consumption in kilowatt hours per year are in the following range, relative to the living space: 30 m2: 3800 - 5000 kWh. 50 m2: 5000 - 7000 kWh.
How do you convert cubic feet of natural gas to therms? ›- Background: 1 cubic foot of natural gas = 1,000 Btus. 1 Therm = 100,000 Btus.
- Therefore: 1 Therm = 100 cubic feet of natural gas. or. 1 cubic foot of natural gas = 0.01 Therm.
- Example: $0.10 / cubic foot of natural gas = $0.001 / Therm.
ft3↔Ccf 1 Ccf = 100 ft3.
How do you convert CCF to kWh? ›Conversion Factors:
One CCF = 100,000 Btus. One therm = 100,000 Btus. One kWh = 1,000 Watts = 3,413 Btus. 100,000 Btus/therm divided by 3,413 Btus/kWh = 29.3 kWhs/therm or CCF.
The “M” in MCF stands for Roman numeral for 1,000. So “MCF” means 1,000 cubic feet of natural gas. Therms measure the energy output of a unit of gas. One therm is the amount of energy or heat equivalent to 100,000 BTU, or British Thermal Units.
How many cubic feet are in a gallon of natural gas? ›
1 gallon natural gas = 82.62 cubic feet natural gas. 100 gallons natural gas = 8262 cubic feet natural gas.
How many CCF are in a MCF? ›To convert the MCF figure to CCF, multiply the MCF number by 10.
How do you convert CCF to BTU? ›Multiply the number of CCF by 100 to obtain the amount of natural gas in cubic feet. For example, if the amount of natural gas is 15 CCF, then multiply by 100 to obtain the amount in cubic feet, which is 1,500 cubic feet. Multiply that number by 1,027, which is the conversion constant from cubic feet to BTUs.
What are CCF units? ›A CCF also called an HCF (hundred cubic feet), represents one hundred cubic feet of water. The first "C" comes from the Roman word for hundred, "centum.” This is the most common unit used by both water and natural gas utilities.
How do you calculate a therm? ›To calculate the therm factor for a billing period, add the weekly heating values shown for any date that falls within the billing period and divide by that number of heating values, then divide that number by 1000.
What state has the cheapest natural gas? ›The cheapest residential natural gas rates
Utah has the cheapest natural gas rates, coming in at $9.12 per 1,000 cubic feet. That's nearly 8 percent lower than No. 2 Montana. The average rate for the month was $17.57.
Natural Gas Customers
Natural gas serves nearly 66.7 million homes; 5.4 million businesses like hotels, restaurants, hospitals, schools and supermarkets; 192,000 factories; and 1,900 electric generating units. On a daily basis, the average U.S. home uses 196 cubic feet of natural gas.
| Conversions Table | |
|---|---|
| 20 Cubic Feet Of Natural Gas to Gallons-atmosphere = 55014.3143 | 900 Cubic Feet Of Natural Gas to Gallons-atmosphere = 2475644.1445 |
| 30 Cubic Feet Of Natural Gas to Gallons-atmosphere = 82521.4715 | 1,000 Cubic Feet Of Natural Gas to Gallons-atmosphere = 2750715.7162 |
Natural gas is commonly measured by the cubic foot, and you are billed by the thousands of cubic feet (MCF) or hundreds of cubic feet (CCF). You may also be billed by the therm, which is approximately the same as a CCF or 100 cubic feet.
How much is an MCF of gas worth? ›The price of natural gas now is around $4 /mcf, which is low in relationship to the price of oil.
What does MCF mean in natural gas? ›
MCF is an abbreviation derived from the Roman numeral M for one thousand, put together with cubic feet (CF) to measure a quantity of natural gas. For example, a natural gas well that produces 400 MCF of gas per day operates with a daily production rate of 400,000 cubic feet.
How do you convert CCF to kWh? ›Conversion Factors:
One CCF = 100,000 Btus. One therm = 100,000 Btus. One kWh = 1,000 Watts = 3,413 Btus. 100,000 Btus/therm divided by 3,413 Btus/kWh = 29.3 kWhs/therm or CCF.
Common Energy Equivalents:
1 CCF = 100 cu ft = 1 therm = 103,000 Btu. 1 MCF = 1,000 cu ft = 10 therms = 1,034,000 Btu = 1.034 MMBtu. Propane: 1 gal propane = 91,600 Btu. 1 cu ft propane = 2,500 Btu.
Propane contains more than twice the energy of natural gas. In one hour, a 100,000 BTU natural gas furnace burns around 97 cubic feet while a propane furnace burns only 40 cubic feet in an hour.