Natural gas in the U.S. is primarily used for generating electricity, and for residential, commercial, and industrial heating and cooling.

Since the use of natural gas is so diverse, its value would tend to grow at higher pace than the value of other energy mediums. For example, as of April 2006 a 2 year future contract for natural gas was selling for 11.27$/tcf (current price 7.3$/tcf). A 2 year future contract for oil sells for 71.9, while the current price is around 70. The market is anticipating a higher price growth for natural gas.

Alaska is ranked as a number one state in the U.S. with the cheapest price of gas. As of 2004 the average price of natural gas in Alaska was more than 5 times cheaper than in Hawaii, and twice as cheap as an average U.S. price.

However, cheap natural gas is not available for the entire Alaska. Regions remote from Cook Inlet have to pay much higher than national average prices for energy. 

Alaska is rich with natural gas but currently has no means of transporting it to the market, Alaskan natural gas is underpriced. WIth the construction of the natural gas pipeline, the resource is more likely to be fairly priced since it will become more accessible.

Current proposals for the natural gas pipeline development take into account the factor that many Alaskan communities overpay for their energy. Because of the per mile usage fee for the pipeline, Alaska's towns and villages will get their gas cheaper.

Data is derived from Energy Information Adminitration, and NYMEX