Why Are Natural Gas Prices High, and What We Can Do About It?

This winter, we've seen historically high prices for natural gas. We know that for many Oklahoma Natural Gas Company customers, paying for their energy use in recent months has been a real challenge.

The reasons for the significant increase in the price of the fuel you burn are complex and extend far beyond the borders of Oklahoma. And the truth is, Oklahoma Natural Gas has no control over the market price of natural gas. In the winter months, when we're using more gas, the cost of the fuel can be 70 percent or more of the total bill.

But there are steps you can take to make the most efficient use of the natural gas you consume. And there are payment options available to most of our customers that can help spread your energy expense over the entire year.

Throughout our 100-year history, Oklahoma Natural Gas Company has been committed to a philosophy of business that regards our customers as more than just a source of income: We are a part of the communities and state we serve. We will do everything we can to help our fellow Oklahomans meet this challenge.

What's Driving Prices?
Like any other commodity, the price of natural gas rises and falls in large measure based on how much is available and how much the marketplace demands. It's important for us in Oklahoma to understand that the prices we pay are tied to the national demand and economy. Even though a great deal of natural gas is produced in our state, the majority of it is sold elsewhere. That means that factors such as weather (in the entire country, not just here) and the amount of gas in storage play a role in setting the market price.

A complicating factor was the disruption of offshore production of natural gas in the Gulf of Mexico caused by last summer's hurricanes. Some of that production remains offline, reducing national supplies and contributing to the general volatility of natural gas prices.

For a more detailed discussion of the factors that drive natural gas prices and the outlook for this winter, follow this link to the U. S. Energy Information Administration.

What is ONG Doing About Natural Gas Prices?
Oklahoma Natural Gas Company has no control over the market price of natural gas, but we take every possible step to guarantee that our customers have a reliable, secure supply at the most reasonable prices we can obtain.

Oklahoma Natural Gas purchases fuel for our customers through a competitive bidding process that includes a variety of contracts. These purchases include volumes of natural gas obtained during the spring and summer months with fixed-price contracts. Other contracts are tied to market indices that reflect prevailing prices. In addition to that, we also have quantities of natural gas in storage available for our customers' use. The per-Dekatherm charge for the fuel you use is an average of all of these contract prices, and reflects what Oklahoma Natural Gas actually pays for the gas. Oklahoma Natural Gas Company makes no profit on the sale of natural gas. We earn our return through charges for service and delivery and these rates are regulated by the Oklahoma Corporation Commission.

What Can I Do to Lower My Bill?
A good starting place is to make sure that you've done everything that you can to improve your home's energy efficiency and that your natural gas-fueled equipment is properly maintained and adjusted. You'll find a helpful list of money-saving conservation tips here.

Can I Average My Bill?
Yes... if we have 12 months of consumption history for your home and your account is current. The Average Payment Plan is a great way to spread your energy expenses out over a longer period of time and lower your winter bills. You'll find more information about the Average Payment Plan and an enrollment form here.

What If I Still Can't Pay My Bill?
It's important that you let us know if you believe you will be unable to pay your Oklahoma Natural Gas bill. Depending on your history with us, we may be able to establish payment arrangements that allow you to spread the amount you owe over a longer period of time. And our customer service representatives are familiar with assistance programs offered through government and social service agencies.

Have a Question? A good resource is our Help Center, where you'll find answers to many frequently-asked questions. You can also send us an email by visiting the Help Center if you need assistance with your Oklahoma Natural Gas Company account.