Natural gas prices have surged to their highest prices in years. The one-year outlook for gas prices is $5.75 to $6.25, which are some of the highest prices seen since February 2014. There are a few reasons for this price increase.
Natural gas production has decreased as oil well drilling in North America slowed down. Many of these wells also produce natural gas in their extraction process. Over 100 producers claimed bankruptcy due to a variety of factors including the pandemic. Hurricane Ida also impacted production this year.
Demand for natural gas has also increased as businesses return to normal. Additionally, with gas prices soaring overseas, the United States is shipping as much liquid natural gas exports from North America as it can, decreasing natural gas inventory on the continent.
All these factors and more are contributing to a 7 year-high for natural gas commodity prices.
Many members are already locked into long-term deals that protect them from these price increases. If you are not, we recommend you talk to your sales rep about your concerns. Patience may be the best course of action.