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Article Analysis on a Current Event Week One
Natural Gas Prices Rising
Theresa Singletary
The University of Phoenix SLC
ECO 360 / Economics for Business I
Instructor: Dr. Uju Eke
March 30, 2004
This paper is going to contain an analysis about articles pertaining to a current event related to the market in which my organization operates. According to the book Macroeconomics, by David Colander, economics is defined as the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. This paper will also include an example of supply and demand related to this topic, and discuss the difference between movement along and shift of the demand curve. In addition, the role of government will be discussed as well. The articles I have chosen are entitled, "Natural gas prices rising" by Lisa Hayes who is staff writer at Petoskey Newspaper, and an article retrieved from DTE Energy's intranet website entitled "Rising Natural Gas Costs".
I am employed at DTE Energy, which is an energy provider for over 2.1 million electric customers and 1.2 million gas customers for Southeastern Michigan. The current event related to this organization is the rising of natural gas prices. Natural gas prices are rising because the demand is up, which means that prices go up. DTE projected gas prices to rise this winter, and then remain steady throughout the spring and summer. However, one factor contributing to the price increase is low natural gas reserves which are the result of the long cold winter, past the significantly depleted underground storage stockpiles, meaning more gas now needs to be bought to compensate. This is definitely a supply and demand issue (Hayes, L).
The price of natural gas is a National issue, not just a Michigan issue. This is an issue for all...
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