The American glass industry is literally facing life-or-death because of the uncertainties associated with natural gas supplies. The damage caused by hurricanes to the US infrastructure, has spotlighted its fragility, meaning that the natural gas supply is not as reliable as it once was, and will not be for many years. Spot shortages have occurred. Since 2003, the price has been inexorably increasing, all so adding to the burden of the glass industry. Superimposed on this have been wild fluctuations in price. The impact on the glass industry, although it varies by sector, is huge. The average energy portion of the cost of producing glass increased from around 15% to 40%. The glass industry must choose between locking in natural gas at high prices or buying the lowest cost gas on the spot market and risking the purchase of whatever is available when needed.
