Natural-gas prices have risen to their highest level in more than seven years, owing to a delayed recovery in Gulf of Mexico production following a storm in August, as well as robust US exports and tight supplies. Natural gas and power costs have risen as a result of recent weakness in wind output in Europe, combined with low natural gas inventory ahead of the winter season. Increasing demand for liquefied natural gas (LNG) in Europe, Asia, and Latin America has resulted in record-high U.S. exports this year, he adds, helping to push U.S. natural gas futures to their highest level since February 2014.
According to the Energy Information Administration, natural gas exports from the United States achieved a new high in 2020. According to Bryan Benoit, national managing partner, energy, at Grant Thornton, exports could climb by 20% to 25% this year. Meanwhile, he claims that the hot summer months of 2021 “resulted in a more significant increase in natural gas demand and price.” In addition, stockpiles must be replenished in order to prepare for the winter heating season.
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