US Natural Gas Prices Fall to Lowest Number Since the 1970s
WASHINGTON — An oversupply of natural gas in the U.S. will drive average prices in real terms at the Henry Hub benchmark to a level not seen since the 1970s, according to a report from IHS Markit.
The oversupply — to be reinforced by a new surge in associated gas production from the Permian basin in west Texas and New Mexico — will push the average price down below $2 million Btu (MMBtu) for the year. That is the lowest average prices in real terms since the 1970s. In nominal terms, the last time that prices fell below $2 MMBtu was 1995.