[SeekAndFind]

To summarize the author's four points, this is largely why natural gas prices quadrupled in two years:

1. Natural gas exports are growing rapidly

2. The LNG market is being influenced by soaring prices in Europe

3. Strong natural gas demand has pulled natural gas inventories to a relatively low level

3. Fear often causes the oil and gas markets to overshoot

READ ABOVE ARTICLE FOR THE DETAILS

[SeekAndFind]

According to the author, The primary reason natural gas was at $2/MMBtu two years ago is that the 2019-2020 winter was one of the warmest on record. That meant that we exited the winter with natural gas storage levels at the top of the five year average range, as seen below.




Note the two areas circled in the graphic. In 2020, natural gas inventories were at the top of the normal range, and this year they have dropped to nearly the bottom. In fact, the drop to the bottom roughly coincides with Russia’s invasion of Ukraine.

Historically, natural gas inventories are a strong predictor of natural gas prices. Exit the winter with high inventories, and prices are going to be low. Head into winter with low inventories, and prices are going to be high.

Note that natural gas production levels are at record highs, so we can’t blame a lack of production on this issue. This is from soaring demand, led in the past two years by the fastest-growing LNG export market in the world.

[glorgau]

Unhhhh no. It’s because carbon is evil. All sources and repositories of carbon must be eliminated. So says science.

[maddog55]

We shouldn’t export any.. let Europe solve their own damn problems.

[PGR88]

In 2015, U.S. LNG exports were equal to about 0.01% of U.S. production. By 2019, that had risen to 5.1%. By 2019 it had grown to 10%, and it will be even higher this year.

The article needs some editing, but regardless, its a good point, whatever the correct dates are

Also, people refer to gas at $2/mmbtu as something natural or reasonable. It is not

During the decade of 2010-2020, frackers lost a collective $300 billion. They poured cheap Federal Reserve money into holes in the ground. Sure, it gave us cheap gas for a period, but it bankrupted many of them.

Their CEO's and shareholders are not going back that. Especially now with inflation cost-push. I would say $4-$6/mmbtu is probably a more reasonable and sustainable number to sustain long-term investment (which isn't even happening, because of the global leftist war on gas and oil)

[pas]

So corporate greed. At least that is what Dem voters hear.

[cymbeline]

“READ ABOVE ARTICLE FOR THE DETAILS “

Thanks for the summary. I looked at the article. A little bulked up with me, me, me.

[eastexsteve]

Quadrupled? My shrinking royalty checks don’t show it.