In the News - Gas Prices

Yasim's presentation today was about the falling gas pricesd and what we can expect to see in the upcoming years. I don't see gas prices going up much in the next 6 months, only because demand will stay low due to businesses having less business gonig on, and consumers cutting back on travel and spending.

I'm not sure the president can do much in the short term to affect gas prices, since any new drilling will not affect the U.S. supply for several years, and he can't directly control much in terms of global demand. In fact, the thing the president is most likely to do is raise gas prices. If the economy improves and people begin working, manufacturing, and such at the same levels previously dnoe, then demand for gas will rise and prices will as well.

The only thing I've always wondered is how gas companies balance the cost it takes to extract gas at times of low demand with the amount they sell it for during periods of high demand. Or the reverse. How can you have abusiness mdoel where the cost of producing the product can be very unrelated to the cost it sells for?