Major Shifts in Global Energy Market Could Spell the End of Cheap Natural Gas
Retrieved on:
Wednesday, April 19, 2023
Rising U.S. exports of liquefied natural gas (LNG), fewer opportunities for fuel-switching between coal and gas and supply chain bottlenecks could all contribute to higher domestic energy costs in the years to come.
Key Points:
- Rising U.S. exports of liquefied natural gas (LNG), fewer opportunities for fuel-switching between coal and gas and supply chain bottlenecks could all contribute to higher domestic energy costs in the years to come.
- “Over the past century, the U.S. has operated as a natural gas island with domestic supply sufficient to meet the nation’s requirements,” said Teri Viswanath , lead power, energy and water economist for CoBank.
- Today, the U.S. produces almost double the amount of natural gas it did in 2006 and total exports account for one-fifth of that production.
- Wholesale consumers should revive natural gas hedging programs and incorporate adequate physical supply contracts as a buffer against rising prices,” Viswanath said.