Though this winter has been unseasonably warm, many Texans have had to switch the heat back on lately. A series of cold fronts swept over the state starting late last week, causing temperatures to dip. And those using gas to heat their homes may see lower bills: On Friday, natural gas prices dropped to their lowest in years.
Matt Smith, director of commodity research for ClipperData, says the supply and demand sides of the equation have both led to falling natural gas prices.
“From the supply side, natural gas production in the U.S. has climbed to a record in 2019,” Smith says. “And that, in no small part, has been encouraged by ‘associated gas,’ which is natural gas produced as a byproduct from oil extraction.”
What you’ll hear in this segment:
– How lower energy demand has affected gas prices
– How record-high gas exports are playing a role
– What factors could lead to price hikes in the short term and the long term
Written by Shelly Brisbin.