Jinjoo Lee of The Wall Street Journal explains why natural gas prices may be especially volatile this year.
- A lack of new infrastructure, including pipelines, could hamper the supply of natural gas.
- A readily available supply of coal, which is used as a backup energy generator when natural gas supplies are low, is also shrinking which could increase costs for consumers.
- By reducing regulations for critical infrastructure like pipelines, lawmakers can clear the way for the private sector to provide affordable energy to consumers.
“What could worsen fluctuations even further are extreme weather events, which have become more common since the 1970s. That not only accentuates the highs and lows of natural-gas demand but also can affect supply. Colder-than-expected winter days have already caused more freeze-offs in natural-gas supply in recent years, notes Mr. Rubin. In 2021, a cold blast hitting Texas and neighboring states resulted in the largest monthly decline in U.S. natural-gas production ever and a 70-fold increase in local prices.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
