Natural gas and propane are the only two
petroleum products that can be used by the consumer
in almost the same form it left the upstream
producing areas. One thing is added however to make
the product smell. Mercaptan is added to make these
naturally odorless gases pungent. This is done for
safety reasons to alert people there is a leak. By
minimizing any issues with natural gas, the industry
makes it appealing to the consumer.
Natural gas is sold by the supply or marketing
departments of production companies such as the
marketing branch of Shell Canada. The buyers can
include oil refineries, petrochemical companies,
industrials and commercial companies, and local gas
distributors. Consumers generally obtain natural gas
from the local distribution companies who bought the
gas from the producers and resell it. Local distribution companies like ATCO Gas in Alberta
charge a delivery fee for this service.
Prices for natural gas fluctuate greatly due to
many factors. The balance between supply and demand
in North America
affects the prices. For example, if the supply
levels are low and the demand is high, then the
price increases as the natural gas has to be
imported. Other factors that affect the price are
access to reserves, costs of transportation, storage,
and distribution.
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