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.
Bans on fracking in states like New York and Massachusetts, both huge consumers of natural gas, force the rest of the USA to subsidize their enviro fantasies. Those states should be cut off the gas grid because while they have the ability to produce natural gas, but they choose not to.
Bans on exploration and fracking by Biden and his warlocks exacerbate the problem of increased foreign demand. In a free country, increased demand and high prices would drive increased exploration and production.
Been posting the US daily petroleum exports from eia.gov over the past five weeks and seem to go over everyone’s head.