By Jittapon @ Adobe Stock
With a big ice storm coming, natural gas buyers have driven prices up on worries that production facilities will be impacted by the severe weather. Prices for Henry Hub gas rose to $4.96/MMBTU yesterday, a jump of 62% compared to only two days prior.
The intense storm predictions cover areas of Texas, Oklahoma, and Arkansas, as well as Pennsylvania, home to the Marcellus shale formation.
Source: National Weather Service
In the map below, you can see America’s top 100 natural gas fields by reserves, with a significant portion positioned within the storm’s predicted track.
Source: EIA
As America has reduced coal consumption, it has rapidly increased natural gas consumption. Disruptions to production now will mean greater uncertainty for energy consumers, both for heating and power generation.
Be sure your family is prepared for the storm.