EIA’s NatGas Price Predictions for 2016/2017 – The How & Why

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Hang around gas guys and gals long enough and you come to understand the perennial parlor game played is to guess what the price of natural gas is going to do in the next week, month, year, two years, etc. It’s always about the price. The U.S. Energy Information Administration (EIA) released their Short Term Energy Outlook a few weeks ago and predicted the average price of natural gas as traded at the Henry Hub delivery point would rise to $2.65 per million British thermal units (MMBtu) this year, and go up a bit more in 2017–to an average of $3.22/MMBtu (see EIA’s STEO Predicts NatGas Price Constant This Year, Up Next Year). In a post on their Today in Energy publication yesterday, the EIA further elucidated what factors are taken into consideration when making their predictions about natgas prices for 2016 and 2017. It’s instructive…

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