How to Save the US Natural Gas Sector
US
natural gas prices are at record lows–about where they were in 1976,
and at the low points in the 1990s, in today’s dollars (Figure 1).
Figure 1. US wellhead natural gas prices based on EIA data, adjusted to
January 2012 price levels using US CPI All Urban Price data. There are
several reasons why US natural gas prices are so low: • Our pricing
system is based on short-term supply and demand, and storage facilities
are limited. It is very easy for supply to overwhelm the system, and
prices to drop very low in response,…Read more...
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