US natural gas prices drop 46% this year as market cools
Monday, February 13, 2023
Natural gas prices have fallen by 46% this year across the United States, threatening to reduce drilling and merger and acquisition activity, according to Reuters.
The shift in the market seemed unthinkable when global demand skyrocketed just six months ago as Russia reduced its gas flows to Europe. U.S. gas futures were trading at $9 per million British thermal units in August 2022. And market conditions pushed natural gas prices to an average of $5.46 per mmBtu last year — the highest price in over a decade.
However, current natural gas futures are trading at $2.42 per mmBtu and analysts are reducing their outlook for gas prices for this year.
Learn more: Reuters > As natural gas prices tumble, new worries for U.S. shale patch
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
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Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.