Natural gas prices have been in the stratosphere, and that’s why the industry has been scrambling to put a hold on new gas plants.
According to a report by the U.S. Energy Information Administration, natural gas prices averaged $1.23/MMBtu in the third quarter of 2018, well above the average of $1 and $1/Mmbtu in previous quarters.
“In 2018, natural-gas prices averaged a record high of $3.11/Mbtu, and continued to outpace all other natural-resource commodities in the second quarter,” the EIA said in its annual report.
“Natural-gas market share has been declining in recent years, with gas prices declining to levels not seen since 2010.”
Natural gas prices also have fallen in recent months.
In the third and fourth quarters, natural cost $1,946/Mbtu.
For the first time since the 2008-2009 recession, the number of active natural gas plants in the U, Texas, and West Texas fell by more than a quarter, according to the Natural Gas Institute.
In a statement, EIA Director Doug Wicks said, “We continue to see strong domestic demand for natural gas as well as the continuing decline in natural gas costs, and are concerned that the ban will hurt U.s. energy security, reduce job opportunities, and negatively impact the economic growth of our state and country.”
According the EIG, U.T. and Texas both have large natural gas markets that are experiencing rapid growth.
“Natural gas was the largest contributor to Texas’ total natural gas export capacity in 2018, surpassing coal for the second consecutive year,” the report said.
However, the EIS also said, “Despite strong domestic production, Texas remains the only state in the nation that has been producing less natural gas per capita than the nation.”
The EIA also said that, The natural gas industry’s ability to expand in Texas, despite the natural gas tax, is limited by the federal ban.
The EIA added that the UTA is also experiencing economic challenges in the region, with the number one industry job loss in Texas being a loss of 1,400 positions.
As for West Texas, the state’s economy grew by 6.4 percent last year.
But even with that increase, the economic impact of the natural-sources ban is not as significant as in other states, according the EIE.
The EIG report said that natural gas companies have made the difficult decision to suspend or reduce their operations in Texas and Louisiana, while continuing to invest in new projects.
At the same time, the report noted that oil and gas companies, who are the largest suppliers of natural gas in the state, have also decided to suspend operations in the states.
Meanwhile, a recent report from the International Energy Agency (IEA) predicted that the country’s oil and natural gas production will drop below 1.6 million barrels a day by 2040.
It is a prediction that many industry leaders agree with, as well.
Industry leaders including ExxonMobil, Shell, Chevron, ChevronTexaco, Halliburton, and BP have all recently announced that they will be reducing the number and types of projects they are planning to do in the near future.
This could mean fewer jobs in the future, and a reduction in the amount of natural resources that can be produced in the US.
Natural gas will likely be the most expensive commodity to produce, but the economic and environmental impacts of the ban are just as serious.
According to the EAA, there are several factors that make natural gas more expensive than oil and other petroleum products: