NatGas Commodity Price Hits 10-Year Low, Facts & Figures

trending downYesterday the commodity price of natural gas hit a 10-year low, $1.984 per 1,000 cubic feet. There will be plenty of stories in the press about it. However, in one of those stories, we get this interesting and helpful information about the price, as well as the areas producing the most natural gas and the drillers producing it:

Prices and costs*

  • Current U.S. futures price: $1.984 per 1,000 cubic feet
  • All-time low: $1.32 (Jan. 13, 1995)
  • All-time high: $15.38 (Dec. 13, 2005)
  • 10-year average: $5.96
  • Current price in Asia: $15.90
  • Current price in Europe: $9.37


  • Top 5 producers of natural gas in the U.S.: ExxonMobil, Chesapeake Energy, Anadarko Petroleum, Devon Energy, Encana.
  • Top 5 producing states in the U.S.: Texas, Alaska, Louisiana, Wyoming, Oklahoma.
  • Top 5 producing countries: U.S., Russia, Iran, Algeria, Canada.

*Monroe (LA) The News Star (Apr 12, 2012) – Natural gas price declines

  • Anonymous

    I take a positive view of  current low natural gas prices. Absent the Picken’s plan to incentivize converting  truck fleets to cng or lng and deploying fueling stations [ which Congress in their stupidity failed to do over the last 2 years ] , the next fastest way to  increase demand for natural gas is  an extremely large difference in price between diesel and natural gas fuels. We have that now!
     No truck manufacturer can afford to NOT produce a line of trucks using natural gas in some form.No Utility can build an  electric generation plant without considering natural gas . Chemical, cement , and fertilizer companies must consider returning or building new  manufacturing plants in the U.S. to stay competitive in the global market.
      Here , ironically, the EPA  is aiding the natural gas industry. New cross state and  greenhouse gas emission rules make it very difficult for coal to be used in future electric generation plants  while natural gas plants fall well within the guidelines for emissions.

  • Yes, I think the demand for NG will increase given 1) its low price and 2) which is most important, is its now proven abundant supply. In the past power gen plants and commercial trucks did not consider NG to be a cheap LONG TERM available and reliable source or energy. Those companies that now drill and even cap NG wells will do best in the long run. The wet gas wells should be the main focus with high oil prices, because as the wet gas wells run their course, they will produce more NG relative to their wet components. When we see the futures market reverse, than we will know.

  • Anonymous

    I think you’re right that low nat gas prices are good for a number of reasons.  It should serve as an incentive to auto manufacturers and those companies who may be inclined to build fueling stations and infrastructure.  Though I don’t think you need to constantly insult those with whom you disagree.  i.e. calling Congress stupid.  Does the Congress make bad decisions?  Absolutely, but I think voting down add’l subsidies for the industry was correct.  Giving preferential treatment to one end-use segment of the resource (transportation) occurs at the expense of all other uses of the fuel.  How do we know that subsidizing gas power generation isn’t better?  Or providing gas heat to residents in remote parts of the country who currently don’t have access to utility service?  The subsidies also distort the true cost of entering the market by placing that portion on the taxpayer.
    If the industry wants to fuel our truck fleets and ultimately our passenger cars with nat gas, let them sell the public on that idea.  Let them convince us our next vehicle purchase should be one of these.    When the government tries to pick a winner by mandating a specific technology or subsidizing it, it’s inviting all sorts of problems.  Typically it’s those who are politically well connected and/or wealthy (Mr Pickens) who make out at the expense of the taxpayer.
    That said, I agree with your point that the chemical, fertilizer industries and others should consider new plants here in the US and I have to think those things are being looked at, in addition to reopening plants that have been shuttered.   It’s a huge opportunity for these and many others to benefit.

  • Anonymous

     What is it with this free market knows all mentality I hear quoted all the time? Without government subsidies there would not have been the railroad development of the 19th century. There would not have been the 20th century interstate highway system, the rapid  development of the oil industry , the internet , and a thousand other products and technological breakthroughs.All that state of the art military equipment, which keeps this country safe ,comes from a long list of cost plus government contracts…. Capital does not like risk;  it often  takes  additional incentives  government can provide to get things going.
      In the case of government incentives to convert to LNG or CNG transportation, taxpayers don’t have to put up a  dime. The fuels themselves or natural gas can pay the government  a small tax  to incentivize  their use which in return, would make them more valuable as demand rises. Everybody wins!
      As far as calling Congress stupid; I thought I was being kind; at least it didn’t imply ignorance, greed, self-serving, partisan, and ideological zealotry.

  • Anonymous

     Wow, I finally agree with everything you wrote in response to Rudymeister. However, what is”your” problem with free enterprise? Usually the Government steps in and offers subsidies,incentives,etc. only when it is a pretty safe bet to do so. When they try and make a futuristic reach ( ex.Solyndra robbery) it bites them/ us in the ass. Pickens has been shelling out big bucks for years to win the ” Wind Turbine” war. It has not worked, he now,has changed his tune and speaks openly and often in favor of the value of NG exploration and recovery as the true  energy answer. Energy companies/ investors with deep pockets have been paving the way( privately owned free enterprise companies that is) with advertising, infrastructure, and now proof positive that there is plenty of NG, on their dimes. Only now, you will see government step in begin to come around, and rally behind those true entrepreneurs,( you know the ones that put up their billions and hit gold). They also have to figure out how they can get their pockets lined in the process transitioning from the OPEC payroll to the USA Payroll.  I especially like your last sentence, I guess you finally learned something after college,it doesn’t pay to be a democrat. Capisci? Didn’t want to brooklynise you on this one, I think your coming around.Coming off the fence yet?

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