Natural gas prices on the rise as demand remains consistent and production lags
Thursday, August 25, 2022
A combination of constant domestic demand, mounting calls for exports of LNG and slow production growth pushed natural gas futures above $9.00/MMBtu in August and the trend could continue for years, according to Natural Gas Intelligence.
Analysts who spoke earlier this month at the LDC Gas Forum Rockies & West in Denver made this assessment as prices have more than doubled this year and recently approached their highest levels since 2008.
Hot summers, long-term commitments to natural gas as a principal energy source from utility companies and modest growth due to companies’ shifted focus to pay down debt and return excess capital to investors are all driving forces in higher prices. And these trends are expected to continue well into the future.
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