The Sky is Falling (actually commodity prices for methane gas)

Matthew Fox of Business Insider writes in a story on January 22, 2023, Natural gas prices have crashed 50% in less than a month, and now an energy CEO is ringing the alarm

Natural gas prices have plunged over the past month as an unusually warm winter hits both the US and Europe, denting demand for the heating source. That has one energy CEO ringing the alarm bell, advocating measures for the natural gas industry to take to avoid the same fate of oil companies during the years-long shale bust that started in late 2014. The decline in natural gas prices has been swift, with the commodity dropping 51% in just under a month.

Matthew Fox | Business Insider

“Growth in gas supply is not needed in the short term.”

Chesapeake Energy CEO Domenic J. Dell’Osso, Jr.

On January 20, 2023 the commodity price of natural gas had fallen to $3.13 Source

When will US consumers see the benefit in lower home heating costs?

A dip in supply would help Chesapeake and the rest of its industry better navigate the recent slump in natural gas prices. And to do that, their priorities need to shift away from production growth and towards profits. A cold spell would help too.

Matthew Fox | Business Insider

Analysis: Home Utility Price Spikes in 2021-2022
January 27, 2023
– Natural gas therms went up 360-percent over the 24 month period, while kilowatt hours (kWh) went up 162-percent over the 24 month period.

EUROPE GAS-Prices fall on high inventory levels and LNG imports
January 27, 2023
– The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 has fallen almost 17% so far this week and was on track for its eighth consecutive weekly drop. On Friday by 0947 GMT, the contract was down 3.00 euros at 53.20 euros per megawatt hour (MWh), according to Refinitiv Eikon data. The British within-day TRGBNBPWKD contract fell by 8.00 pence to 135.00 p/therm.

Natural gas prices hit lowest since April 2021 and have crashed 70% from highs as demand weakens
January 26, 2023
– US natural gas prices slumped 8% Thursday to hit the lowest level in nearly two years. At $2.80 per million British thermal units, the latest price represents a plunge of more than 70% from highs reached in August. US exports to Europe have also been limited by a longer-than-expected shutdown at an LNG facility. 

US Natural Gas Falls Below $3 for First Time Since May 2021
January 26, 2023
– Doomsday fears that suppliers wouldn’t be able to meet wintertime demand have been erased by a confluence of factors, leading gas prices to plunge more than 70% after hitting a 14-year high of $10.03 in August. The key reasons for the fall: The US and Europe managed to refill their buffer inventories ahead of winter and relatively balmy seasonal temperatures in the Northern Hemisphere have so far damped demand for heating. The latest revisions to the weather forecast were “absolutely brutal,” indicating a looming cold shot in the US won’t last much and leading traders to bet on mostly mild February temperatures.

Group asks California Attorney General to investigate soaring natural gas bills
January 21, 2023
– “Southern California Gas doubled consumers’ natural gas bills with virtually no notice, leaving its customers with large, unexpected bills,” said Jamie Court, president of Consumer Watchdog, in a letter to Rob Bonta Thursday. “They are now forced to choose between paying their utility bills and their rent, food costs, and other monthly obligations with no warning.” According to SoCalGas, which serves most of Southern California, prices are running about five times higher than last January due to market forces, supply issues and cold-than-normal weather along the West Coast.

Letter to the California Attorney General:

Natural gas prices are dropping. Why are SDG&E bills still so high?
January 20, 2023
– Delivery costs also play a role. San Diego Gas & Electric buys much of its natural gas from other states, such as Texas, which is more challenging to transport than other parts of the country. Another factor- the Pacific Northwest exports hydroelectric power to California. Still, because of the recent cold weather, Oregon and Washington needed more for themselves, so we had to rely on power plants fueled by natural gas. Despite all those reasons, many people still want to know why we do not see a discount on natural gas when global charts show prices dropping daily.

U.S. natural gas slips to fresh 18-mth low on expected Freeport LNG delay
January 19, 2023
– U.S. natural gas futures eased about 1% to a fresh 18-month low on Thursday as another liquefied natural gas (LNG) tanker turned away from Freeport LNG’s export plant in Texas, a further sign that the plant’s restart will likely not happen in January. The market cares about the Freeport plant because prices will likely jump once it returns to service as demand for gas rises. In a sign that a growing number of market participants have given up hope that extreme cold will bring massive price spikes later this winter, the premium on March futures over April , which the industry calls the widow maker, fell to a record low of one cent per mmBtu.