Sunday, September 24 2023 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Sep 18
Week of Sep 11
Week of Sep 04
Week of Aug 28
Week of Aug 21
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    U.S. Natural Gas Prices Crash By 7%

    January 26, 2023 - admin


      By Charles Kennedy U.S. natural gas prices fell below $3 per million British thermal units this week for the first time in two years amid continuing warm weather that started a commodity selloff. Prices first dipped below $3 per MMBtu on Wednesday and were still there as of today, trading at a little over $2.9 per MMBtu at the time of writing. According to Bloomberg, the price decline in natural gas was a result of, above all, the mild winter in the northern hemisphere. The fact that both the United States and Europe managed to fill up their gas storage ahead of the start of heating season also played a bearish role in natural gas prices. U.S. gas production surged over the past two years, making ample supply available in response to higher demand. Production is set to continue to grow this year, as well, according to the Energy Information Administration. Continued increases in U.S. dry natural gas production will outpace domestic demand and exports this year and next, sending the average U.S. gas benchmark price lower than in 2022, the EIA said earlier this month. According to its January Short-Term Energy Outlook, the EIA expects the U.S. benchmark Henry Hub price to average $4.90 per million British thermal units this year. The projected average would be more than $1.50/mmBtu lower compared to the 2022 average of natural gas prices. The gas industry, however, is giving a different signal. Two industry executives this month have suggested independently of each other that natural gas production growth may be about to slow down. “Growth in gas supply is not needed in the short term. We do think the industry should acknowledge that and may reduce growth in the near term,” said Chesapeake Energy’s CEO, Nick Dell’Osso. Separately, the CEO of EQT said that a forecast 3-billion-cu-ft increase in U.S. daily natural gas production might never materialize. “That’s a little ambitious with the current pullback and prices,” Toby Rice told Bloomberg in an interview. “You are going to see an operator response and slow down in the activity levels.” Crude Oil


    Other Articles - Generation


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2023 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.