ENERGY OVERVIEWS

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Natural Gas Overview | contracts | quote-board

Natural Gas plays a major role in the United States energy profile, where it accounts for almost a quarter of total energy consumption. Its market share is likely to expand because of the favorable competitive position of gas in relation to other fuels, and the tightening environmental standards for fuel combustion. Industrial users and electric utilities together account for 59% of the market; commercial and residential users combined are 42%.

The industry has gone through a metamorphosis since the enactment of the Natural Gas Policy Act of 1978, changing from an almost totally regulated industry to one that today largely operates as a free market. The New York Mercantile Exchange, Inc. launched the world's first natural gas futures contract in April 1990. Volume and open interest have grown rapidly, establishing the contract as the fastest growing instrument in Exchange history.

The Exchange marked another milestone in the energy markets in October 1992 when it launched options on natural gas futures, giving market participants additional flexibility

 

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