Natural Gas News – December 5, 2023
Natural Gas News – December 5, 2023
Natural Gas Is Now Stronger Than Ever In The United States
Recent strong growth in domestic gas production combined with above-average storage levels after the 2022-2023 winter season caused prices to decline by 60% through Q1-3 2023 at Henry Hub. The steepest declines in natural gas prices were recorded in gas-producing areas, including Texas, Louisiana, and the East Coast, as the region benefitted from a particularly mild Q1 2023. The price swing sparked a switch coal to gas-fired generation in the power
sector. The average utilization of coal-fired generation in the United States declined from 48.5% in the first seven months of 2022 to 39.8% in the same period in 2023, while the capacity factor of gas-fired generation increased from 54.6% to 57.7% in the same period. Coal-to-gas switching was particularly noticeable in regions with wholesale markets1, where competition… For more info go to https://shorturl.at/ioGKW
LNG Exports Have Raised Natural Gas Prices For U.S. Households
As winter heating bills start hitting America’s mailboxes over the next few weeks, many families will face sticker shock. Even as inflation has eased in much of the economy, it could cost more than ever to heat our homes. Bloomberg reports that natural gas bills have gone up 29% since the beginning of 2020. Many Americans were braced for higher gas bills in 2022, a rare year in which natural gas prices regularly made news headlines. Russia’s invasion of Ukraine, followed by the explosion of the Nord Stream pipeline carrying gas from Russia to Germany, had caused global gas prices to spike to all-time highs. U.S. exporters quickly ramped up shipments of liquefied
natural gas (LNG) to take advantage of high international prices. Surging LNG exports, in turn, left U.S. gas markets short of… For more info go to https://shorturl.at/knOTU
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