Natural Gas

Published: 11th June 2010
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Natural gas is one of the highest demanded products throughout the entire world. Natural gas is used as an energy source in homes, for heating, as well as to power vehicles. Several other small tools and machines use natural gas as well to energize the equipment, allowing it to continually function properly and due to the world economy's dependence on gas, gas prices are of key importance to commentators for people.

Natural gas prices are determined by four main components. These components are distribution, commodity price, production and transmission. After being produced, gas is transmitted over long distances through piping from the wellhead to several local gas suppliers. The natural gas is then distributed to all of the customers. Natural disasters can sometimes occur, causing the gas suppliers to relocate, which also has a great impact on the price.

Natural gas is a gas composed largely from methane. It is also found closely associated with fossil fuels found in coal bed that are created by methanogenic organisms. These organisms are found in bogs, landfills, and marshes. Natural gas is composed with seventy to ninety percent methane, a twenty percent combination of ethane, propane, and butane, and .8 percent carbon dioxide component, .2 percent of oxygen, and .5 percent of each nitrogen and hydrogen sulphide. Natural gas also contains trace amounts of other rare gases.


Natural gas is believed to be formed within deep layers of the earth's crust. These gasses are formed through a process called abiogenic processing. The process includes a hole drilled through the impermeable rock layer in the earth, the gas then reservoirs under pressure, and escapes. These gases are then removed with a petroleum trap that goes to the earth's crust and extracts the gas form. Before natural gas is used as fuel, it goes through an extensive procedure to eliminate all of the minerals from the product, leaving only methane behind to be used. Natural gas is one of the most widely used suppliers of energy. It is known for being one of the safest, cleanest, and most useful energy sources. Natural gas is odourless, shapeless, and colourless in its pure form.

Natural gas is combustible and gives off a large amount of energy when it is burned. When natural gas is used as an energy source within a home, it is almost entirely pure methane. This form of gas is considered a dry form, because all of the hydrocarbons have been removed. If the hydrocarbons are present within the gas, the gas is known as a wet form.


Along with the most common forms of extracting gas for energy use, several unconventional gas sources also exist. Natural gas is also known to exist in shale deposits. These are formed from mud in shallow seas that have been known to exist over three hundred fifty million years ago. The extraction of these natural gases from shale is extremely difficult, with only ten percent of the gas being recoverable. Other unconventional resources are deep natural gas; found over fifteen thousand feet underground, as well as tight natural gas, which is stuck in extremely tight underground formations.



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