Interesting Comparison of Wellhead and Residential Gas Prices Across States

January 15, 2010

The information below is from the Energy Information Administration.  Note the wide variation in City Gate and Wellhead Prices among different states:

Gas Prices table.jpg  

Below is the same information in graph form.  Why would average residential gas prices in Texas be $12.88 per mcf, while residential prices in California and Minnesota -- far from natural gas production -- be less than $10 per mcf? Why such variations in Residential prices?

 

EIA Natural Gas Prices graph.jpg