There may be no bigger ignored energy reality than that of low-cost natural gas. In 2020, for instance, Henry Hub national prices averaged just $2.05 per MMBtu, their lowest in decades. And this came as U.S. gas production dropped and demand stayed quietly on par with 2019 levels despite the economic devastation of Covid-19. Looking out on the futures curve, as of mid-March, gas prices remain incredibly low, with pricing now below $3.00 through the 2020s. For reference, gas averaged over $6.00 in the era before shale and fracking from 2000-2008.
Low prices for U.S. gas truly are a great thing. Gas is now second to sister fuel oil and supplies 33% of our energy – and 40% of our electricity, double the share of second-place coal. Low and stable natural gas prices have benefitted families and helped businesses reduce costs, saving a family of four, for instance, $2,500 per year since 2007.
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