· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: U.S. natural gas prices are plummeting despite high summer demand, leading major producers like EQT and Coterra Energy to cut back on drilling and delay new projects
• The current benchmark natural-gas futures are at $2.235 per million British thermal units, a significant drop from last year
🔭 The context: A combination of factors, including an unusually warm winter and recent storms that disrupted demand, has led to an oversupply of natural gas • This glut has driven prices to some of the lowest summer levels seen since the 1990s, excluding the 2020 COVID-19 crash
🌍 Why it matters for the planet: The ongoing supply-demand imbalance highlights the volatility in energy markets, which can impact both energy prices and the pace of the transition to renewable energy
• Lower gas prices could slow investments in cleaner energy alternatives
⏭️ What's next: With more than two months before winter heating demand spikes, producers are expected to continue managing output to stabilize prices
• However, the large volume of gas already in storage suggests prices could remain low, benefiting consumers but challenging producers
💬 One quote: "Simply put, gas markets are oversupplied," said Thomas Jorden, CEO of Coterra Energy
📈 One stat: U.S. gas production hit a record of 105 billion cubic feet per day in December, contributing to the current oversupply
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