Friday, March 15, 2013

Natural Gas Prices Increase 65% in 12 Months

Natural gas prices have been increasing over the past twelve months, rising from a low of below $2 per MMBtu in April, 2012 to over $3.50 per MMBtu this week.

The market is adjusting to key price factors, including:
  1. Continued expansion and increased utilization of natural gas fired power plants creating high demand;
  2. Natural gas fracking requires higher natural gas pricing to support capital investments based on expected returns.  Capital formation for fracking has gone flat due to low natural gas prices;
  3. Plans to export natural gas (LNG) to higher cost European markets creates support for a higher price floor.
For more on the natural gas market, please see the following:


1 comment:

Lirah said...

WOW that surely gives a headache for many of us. Better now I joined Syntek Global. I am solved with my gas.