Interesting Comparison of Wellhead and Residential Gas Prices Across States

January 15, 2010
By John McFarland on January 15, 2010 2:50 PM |

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