Price Of Natural Gas Climbing Dramatically

[WM75Guy]

One of our oil/gas production companies stated that 4th quarter revenues were up due to a rise in natural gas prices. I saw today we sold natural gas for $2.08 in December 2024. Current price is almost double at $3.943 as of today. While it helps us on the production side it will certainly hurt those on the consumer side.

 

[WM75Guy]

ConEd in NY is planning on 13% increase in natural gas prices, 11.5% increase in electricity rates.

Kathy Hochul does apparent about-face on natural gas as NYC utility signals major rate hikes

 

[bigtiller]

Could it be because of consumer demand ?

 

[ponytug]

One of our oil/gas production companies stated that 4th quarter revenues were up due to a rise in natural gas prices. I saw today we sold natural gas for $2.08 in December 2024. Current price is almost double at $3.943 as of today. While it helps us on the production side it will certainly hurt those on the consumer side.

Per Therm? Per MMBTU?
Today's national prices;

Today in Energy Daily Prices - U.S. Energy Information Administration (EIA)

www.eia.gov

I suspect that the cold weather and global trade uncertainties (war, tariffs, speculation) are driving the prices upward, as WTI is also up, as is Russian oil.

All the best,

Peter

 

[WM75Guy]

Both domestic demand and international demand are coming into play. The ban on exporting LNG has been lifted. Our royalty prices are shown in MCF, which is a thousand cubic feet. The M is the Roman numeral sign for a thousand.

 

[MapleLeafFarmer]

Both domestic demand and international demand are coming into play. The ban on exporting LNG has been lifted. Our royalty prices are shown in MCF, which is a thousand cubic feet. The M is the Roman numeral sign for a thousand.

also due to the emergency situation in the US, imports of oil, nat. gas and electricity from Canada are about to have imposed new duties. Exact amount TBD but 25% duty has been widely mentioned. Was supposed to start about 2 weeks ago but final amount was delayed for about another 2 weeks. Awaiting word from White House on final when and how much. So much yet uncertain but coming down the pipe.

sellers in Canada already reacting so they don't get caught with contracts that are not high enough to cover the 25% or whatever the final decision is going to be.

About:
- 60% of oil imports
- 99% of nat. gas imports
- 90% electrical imports
made in the US come from Canada.

Lots of arm chair quarter backs out their but seems avg. guess will be a 20 - 30% increase in overall energy prices might be expected.

 

[Tinhack]

sellers in Canada already reacting so they don't get caught with contracts that are not high enough to cover the 25% or whatever the final decision is going to be.

The final amount will ultimately be up to Canada because Trump says any amount imposed by Canada will be added in a reciprocal amount by the US. If Canada wants to play the game, the US will shut the imports down altogether. That will leave Canada with a huge bag of nothing to sell.

Texas "can" produce enough gas for the entire US if push comes to shove.

 

[bcjmmac]

For some clarity on how tariffs work & who will pay them

What are tariffs and how do they work?​

Tariffs are taxes charged on goods imported from other countries.
The companies that bring the foreign goods into the country pay the tax to the government.
Typically, tariffs are a percentage of a product's value. The 10% tariff on Chinese goods means a product worth $10 would have an additional $1 charge applied to it.
Firms may choose to pass on some or all of the cost of tariffs to customers.

What are tariffs, why is Trump using them, and will prices rise?

Tariffs are a central part of Trump's political vision, but economists warn they could put prices up.

www.bbc.com

 

[5030]

ConEd in NY is planning on 13% increase in natural gas prices, 11.5% increase in electricity rates.

Kathy Hochul does apparent about-face on natural gas as NYC utility signals major rate hikes

Hochul is a turd foe many reasons, not just that.