Anyone doubting the truth of the old cliché “all good things must come to an end” should have a conversation with analysts from Wood Mackenzie and Bloomberg New Energy Finance.

These companies recently released studies proving the era of cheap natural gas is coming to an end. Natural gas prices have been low for the past decade, and affordable natural gas has been a bright spot in the decade of inflation.

Wood Mackenzie forecasts Henry Hub natural gas prices, which are the domestic benchmark for the natural gas market and which fell as low as $2 per million British Thermal Units (BTU) over the past decade, will come close to $5 per million BTU in the next decade. The Wood Mackenzie study says that low natural gas prices were driven by “rapid pay development, near-zero-cost associated gas, and year-on-year productivity gains…Those tail winds have largely run their course.” Thus, prices will need to rise to grow supply from here.

These low prices made natural gas the leading fuel for an electricity generation, powering the AI and data........

© Yuma Sun