While it seems like I'm playing the role of Captain Obvious here, it occurred to me this morning that a bit of background information on natural gas was in order. To understand the nature of the natural gas market, rate fluctuations, supply and so on, it is first essential to understand where natural gas comes from, and to understand that it is also essential to understand what natural gas is. It is these unique components of natural gas that directly affect it's extraction, delivery and of course, why you pay what you do to enjoy it in your home.

Natural gas is odorless, colorless and shapeless. Though natural gas is a mixture of hydrocarbon gases (including methane), it emits lower levels of harmful gases when burned. Natural gas is also a fossil fuel, meaning it's formed from the decomposition of organic material—as in plant and animal remains. The compression of said organic matter is caused by the pressure of sediment and other layers on top of the organic materials, as well as the high temperatures beneath the Earth's surface. The resulting break down of carbon bonds in the organic matter leads to our friendly natural gas.

Due to the nature of how natural gas is formed, drilling a hole through the rock in which the gas is trapped allows the natural gas to rise to the surface. Thus, enters the wellhead and natural gas pipeline that help trap and control the flow of gas, which eventually finds its way to our homes and businesses. Voila!