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Index: Environment / Subcategory: Use of Resources

Natural Gas Consumption

Date posted: 08/04/2008

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Natural gas is an important fuel that is used for heating, cooking, and industrial applications. According to the Energy Information Administration, Colorado ranked 6th in the nation for natural gas production in 2006. In 2005, Colorado relied on natural gas for more than one-third of its energy requirements (2005 data is the most current available). The production, storage, and distribution of natural gas requires a complex infrastructure; click here for a list of some of the companies that produce, store, manage, and market natural gas in Colorado.

What this chart shows: Fort Collins Natural Gas Consumption

Fort Collins Natural Gas Consumption

Data Source: City of Fort Collins Advanced Planning Department; Xcel Energy - see Table 6 on page 20 of this report

See data table

What these data tell us:

From 1997 to 2006, consumption of natural gas in Fort Collins increased by 158%, while the number of natural gas customers increased by 46%. Between 2004 and 2005, Fort Collins experienced a 167% increase in natural gas consumption.

All Transfort buses run on either bio-diesel or Compressed Natural Gas. The Compressed Natural Gas Fast Fuel Facility was constructed in 2005 with grant assistance, which resulted in increased use of Transfort services. Transfort's total natural gas consumption was 8,357 gallons in 2007. As a result of utilizing compressed natural gas, the City of Fort Collins saved 12,267 gallons of petroleum in 2007. Transfort traveled 774,545 miles and provided 1.64 million trips in 2007.

What this chart shows: Colorado Natural Gas Consumption by Sector

Colorado Natural Gas Consumption by Sector

Data Source: Energy Information Administration - Colorado Natural Gas Consumption

See data table

What these data tell us:

From 2002 to 2006, residential consumption of natural gas in Colorado declined by 7.4% (about 9.6 billion cubic feet). However, the number of residential customers increased by 5.4% (3,278,717 customers) during this time, indicating that residential customers decreased their use of natural gas, which further implies the use of energy efficiency measures by them. See Colorado Energy and Southwest Energy Efficiency Project for more information on energy efficiency in Colorado.

The use of natural gas for the production of electric power increased by approximately 19% (about 14.8 billion cubic feet), while use for vehicle fuel decreased by 70% (about 417 million cubic feet) from 2002 to 2006. Natural gas consumption by the commercial sector decreased 10.6% (about 7.1 billion cubic feet). Industrial consumption of natural gas declined by 15.3% (about 20 billion cubic feet), during this time. Barring electric power, all other sectors registered a decline in their natural gas consumption from 2002 to 2006.

What this chart shows: Colorado Natural Gas Prices by Sector

Colorado Natural Gas Prices by Sector

Data Source: Energy Information Administration - Colorado Natural Gas Prices

See data table

What these data tell us:

Natural gas prices for all sectors increased from 2002 to 2006. Changes in the price of natural gas are caused by fluctuations in supply and demand, which are in turn affected by a variety of different factors. Cold winter temperatures and increased use can reduce reserves of natural gas and drive up prices. High prices and warmer winters result in reduced usage, increased supply, and lower prices. Economic and energy policy factors also have an effect on supply and demand, so it is not possible to assume a direct correlation between weather patterns and natural gas prices. (See Additional Information for definitions by Sector Price.)

Apart from these, one important factor which has contributed to an increase in natural gas prices in Colorado over the past few years is the introduction of new transmission lines, which enable natural gas to be transported out-of-state more easily. In 2003, the Kern River pipeline, which runs from southwestern Wyoming (which is connected to pipelines from Colorado gas fields) to California, where gas prices are higher than that in Colorado, more than doubled in capacity. As a result, local gas prices have become more competitive, and Colorado's price advantage compared to the rest of the nation has eroded. The prices are expected to increase further in future, with the early 2008 opening of part of the Rockies Express Pipeline, which is expected to have a final capacity to transport 1.8 billion cubic feet natural gas a day from western Colorado to the Midwest.

For additional information about factors that affect residential natural gas prices, see the EIA brochure, 'Residential Natural Gas Prices: Information for Consumers'.

Additional Information:

Sector Price definitions:

On Compass-

Outside Compass-

Colorado Natural Gas Companies

Other Links

Industry Standards or Target: N/A

Data Tables:

Fort Collins Natural Gas Consumption by Sector, 1997-2006 (Million Cubic Feet)

Year

Million Cubic Feet

1997

2,786

1998

3,948

1999

4,028

2000

4,050

2001

4,454

2002

4,725

2003

4,295

2004

2,712

2005

7,228

2006

7,192

See chart

Colorado Natural Gas Consumption by Sector, 2002-2006 (Millions of Cubic Feet)

Year

Residential

Commercial

Industrial

Vehicle Fuel

Electric Power

2002

128,828

66,939

130,336

598

78,171

2003

124,214

62,616

112,339

731

77,895

2004

120,574

61,956

112,174

820

83,369

2005

124,255

62,099

126,360

166

92,629

2006

119,270

59,851

110,362

181

92,927

See chart

Colorado Natural Gas Prices by Sector, 2002-2006 (Average Price Per 1,000 Cubic Feet)

Year

Residential

Commercial

Industrial

Vehicle Fuel

Electric Power

2002

$5.62

$4.82

$4.79

$3.57

$2.53

2003

$6.61

$5.93

$4.46

$4.16

$4.42

2004

$8.47

$7.48

$6.54

$5.99

$5.65

2005

$10.29

$9.38

$8.68

$8.17

$7.41

2006

$10.45

$9.61

$11.53

$5.32

$6.22

See chart