Summer natural gas prices on track to be lowest in more than 20 years
The U.S. Energy Information Administration (EIA) recently forecasted the lowest summer average national natural gas price since 1998. EIA expects Henry Hub natural gas prices will be 55 cents/MMBtu, about 19%, lower than last summer’s average. EIA also forecasts Henry Hub natural gas spot prices for June, July, and August this year will average $2.37 MMBtu. Henry Hub in Louisiana is the benchmark price for North American natural gas.
With record levels of natural gas production, the U.S. must continue to invest in new energy infrastructure and expand the existing network to increase reliable, affordable natural gas access to American consumers across the country.
As a recent Wall Street Journal article pointed out, not all consumers in different regions of the country have experienced the benefits of the natural gas boom. The article highlighted some of the highest prices in the country:
Elsewhere, prices soared due to bouts of cold weather coupled with supply disruptions, including an explosion along a British Columbian pipeline and a leaky underground storage facility near Los Angeles. At a trading hub in Sumas, Wash., natural gas rose to $200 per million British thermal units in March, the highest ever recorded in the U.S. In Southern California, prices went as high as $23; the average over the winter was a record $7.23.
Policymakers at all levels of government must come together to prioritize investment in our critical energy infrastructure. Reliable, affordable energy is key to continued economic growth and bolsters American national security.