The high price of natural gas is often blamed on market developments, when demand is high and supplies are low, prices go up. Some people wonder why natural gas companies don’t stockpile supplies for times like these. Chief Executive Officer Gary Lay with the Republic Alliance for Community Energy in Kansas City says there’s no real incentive for companies to do that. He says companies simply pass along price increase when costs go up, and they have no incentive to act otherwise. And Lay says buying gas on the futures market might not be a good idea either, because prices can drop as well as rise, and if they drop, companies lose money.
