Why Does the Price of Natural Gas Fluctuate and How Can an Energy Broker Help? 

Price of natural gas

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Did you know that, in the U.S. alone, natural gas provides around 30 percent of the energy we use each day? It’s estimated that 100 million American homes rely on it for electricity and heat. Many businesses also invest in natural gas due to its relatively low cost, availability, and safety compared to other fossil fuels.  

But “relatively low cost” doesn’t mean “reliably low.” The price of natural gas is constantly fluctuating, making it difficult for businesses to know how to invest, when to invest, or if to invest at all. As an energy broker, we understand the dynamic nature of natural gas prices and how to navigate them. In this blog, we’ll explore why natural gas prices shift and why energy brokers can be a powerful asset for your business. 

What factors contribute to the price of natural gas? 

At the most basic level, the primary driver of natural gas price fluctuations is demand. Natural gas is often sourced from traditional oil and gas fields and relatively newer sources like fracking. Supply and demand forces cause the market to adjust in response to seasonal fluctuations and long-term trends. For instance, as temperatures drop in the winter, demand for natural gas rises, driving up the cost. On the other hand, mild winters lead to lower prices. Demand can also be influenced by policy shifts, international politics, and new production techniques. The shale gas boom in the U.S. a few years back, for example, increased the availability of natural gas, driving down prices. 

As you can see, the price of natural gas is heavily dependent on a wide variety of factors outside of your control. Thankfully, an energy broker can help. 

How can an energy broker help? 

While an energy broker cannot change the price of natural gas, they can help businesses like yours in other important ways. 

By building an energy management strategy. 

An energy broker can assist businesses by developing an energy management strategy. Typically, this begins with an audit of their current natural gas usage to discover any areas of improvement. Then the broker analyzes the business’ immediate needs and forecasts future needs based on market data. Now that all relevant data has been collected, the broker can successfully build a comprehensive energy management strategy. It will give businesses a “roadmap” on how to use their energy resources to their advantage. 

By knowing when – and how – to buy. 

Whether a company is looking to buy natural gas when the price is low and store it in bulk, or lock in long-term fixed prices, an energy broker can help. They know all the ins and outs of what contracts to draw up, what hedging strategies to employ, and so much more, making these transactions quickly, easily, and to the benefit of the business. 

By ensuring compliance with current regulations 

Energy brokers are important tools for businesses looking to meet specific regulatory requirements, such as reducing greenhouse gas emissions. With their specialized knowledge, energy brokers can provide invaluable support and help companies meet state and federal requirements with ease.   

By connecting you with the best suppliers 

A reputable energy broker has developed trust with the major players in the energy market, making sure their products are of the highest quality, as well as creating strategies that reduce price instability. 

All in all, energy brokers can be essential resources for businesses when navigating the often tumultuous and fluctuating natural gas markets. From supply assessment to compliance monitoring to hedging strategies, an energy broker provides experience, knowledge and invaluable support for business operations that depend on – and invest in – natural gas. 

Getting the Best Natural Gas Prices with GreenStar Solutions 

GreenStar Solutions has helped dozens of businesses just like you save money on natural gas by connecting them with providers who offer the most competitive prices and the best benefits. Not ready to pick a provider but still weighing your options? The experts at GreenStar also provide comprehensive consulting services to ensure our clients are making the most cost-effective decisions possible. Ready to reap the benefits of an energy broker? Reach out to us today

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