Natural Gas Prices Set to Rise
by Jennifer McCleneghan

We can’t be that surprised, can we?  Gasoline prices are at an all-time high so it is only natural that natural gas prices are also set to soar, or is it?  Historically there is a long-run relationship between the two, with short-run forces that can drive disequilibria.  The graph below demonstrates that natural gas is currently undervalued in comparison to crude oil.

Another economic theory pegs the current rise in natural gas as the result of investors flocking to commodities in the face of a falling dollar, weak stock markets and the U.S. credit crunch.

According to Malini Giridhar, Director of Energy Policy and Analysis for Enbridge gas distribution, utility customers could see a sharp jump in their natural gas bills starting July 1, likely a 40% increase in the gas commodity price and a 20% increase in the total gas bill.  That equates to roughly $280 for the average household – assuming current gas prices do not rise further.  The average household currently spends about $1400/year for gas used to heat homes and water.  So, what to do?

Well, for starters, keep the outside air, outside.  By properly insulating your home, you can shave as much as 50% off your gas bill - and we’re not talking pink fibreglass insulation that was developed in the 1930’s.  To really achieve maximum insulation value, go for foam.  A 2lb closed-cell polyurethane foam costs roughly 3 times that of traditional fibreglass insulation, but its ability to insulate is beyond compare.  Because spray foam insulation goes on as a liquid and quickly expands to fill every nook and cranny, it ensures a complete air barrier to lock out those uncomfortable and costly drafts.  Your conscience will also rest easy, because as the heat stays in your house keeping you comfy, your furnace will turn on less, reducing the amount of fossil fuels burned.  The burning of fossil fuels releases greenhouse gas emissions into the environment.

The payback period for spray foam insulation with current market conditions is under 5 years.  So, as prices in natural gas rise, the payoff will be even more attractive.
Longevity is another benefit of spray foam insulation.  Unlike fibreglass and other types of insulation such as cellulose, over time it will not settle, shift or absorb moisture.  There is no need for it to ever be replaced.  As long as the structure to which it was applied remains standing, its performance will be consistent. 

At Foam Comfort Inc. we use PolarFoam 7300 and Polar Foam 7300 Soya, manufactured by Demilec.  It has passed all government criteria for the Canadian Construction Materials Centre (CCMC) and has been tested for safety and quality.

The Polar Foam 7300 Soya is a zero ODS (ozone depleting substance) which is made from soyabean oils and recycled plastic pop bottles. 

Now, if all of that still hasn’t got your convinced, then check out both the Federal Government's ecoENERGY Program and the Provincial Government's Home Energy Retrofit Program , which offers Ontario homeowners who improve their home’s insulation up to $4,700* in rebates.
So, as the saying goes, when life gives you lemons, make lemon-aid.

*based on a detached home