This week, the U.S. Energy Information Administration (EIA) published a report detailing that natural gas prices are set to decrease this winter. This comes as a relief from last winter when natural gas prices soared and set a record high since 2008, costing Americans hundreds of dollars more during a period of already high inflation. As temperatures plummet moving into the winter, an emphasis on natural gas production continues to illustrate its importance to Americans by providing low cost, dependable energy.
Last year, costs were up thirty percent from years prior, driving prices up to an estimated $5.66 per thousand cubic feet (Mcf). The high costs burdened American families that were already facing heavy effects of high global inflation. The EIA predicts costs this year will be 45 percent lower compared to the winter of 2023, averaging $3.12/Mcf. This significant decrease is in large part due to natural gas, which will help supply Americans with essential heat for their homes that doesn’t break the bank.
The high costs from last winter can be attributed to low temperatures and the rise of global energy volatility in the wake of the Ukraine War. The high demand for energy and its national security implications demonstrates the need to continue building out U.S. liquid natural gas (LNG) facilities to stabilize costs for Americans and supply our nation and our allies with affordable energy.
America has projects on the horizon that will help do so. Energy Transfer’s Lake Charles facility and Venture Global’s CP2 project will deliver natural gas throughout or nation as well as our allies. The facilities have already secured long-term contracts. To keep costs low for Americans, the U.S. needs to continue empowering our natural gas industry to increase production.