Is the Rodney Dangerfield of hydrocarbons finally getting the respect it’s due? Reese Energy Consulting today is studying the latest reports on how natural gas is taking on an even greater role in our energy mix and the energy transition. For the better part of a decade—and certainly last year’s Olympic-esque cliff dive—natural gas has taken a royal butt-beating in the price department. While far from its peak of $13.42 per MMBTU in October 2005, gas at $4.04 is now the highest since Summer 2014. Compare this with Europe and Asia, which currently pay $12 to $15 per MMBTU. World demand for gas is soaring, and the shortage out there is huge as evidenced by record-breaking U.S. LNG exports. Japan and China already in 2021 have imported 18 million more tons of LNG than in 2020 and are expected to consume the lion’s share of an additional 30 million tons produced this year. The weight of the energy world may also rest on the shoulders of natural gas for the foreseeable future—or until alternative fuel sources are so abundant, deliverable, and affordable they can realistically, 100%, replace gas altogether. By the way, Winter is coming.
What do you think? Learn more about REC and our natural gas marketing expertise at www.ReeseEnergyConsulting.com.