As NatGas Production Stays High & Wx Moderate, Henry Hub Drops 8%
Although last week saw a nice increase in the futures price for natural gas (the NYMEX front month contract for June, for gas traded at the Henry Hub in Louisiana), the price decreased once again yesterday, dropping 7.7% (-$0.18) to $2.40/MMBtu, which erased more than half of the gains from last week. Why? Primarily because production remains at or near all-time highs of 100 billion cubic feet per day (Bcf/d), and the weather is mild right now–no extreme heat to cause folks to turn on the air conditioner (causing the need for more gas-fired electricity). So here we sit, with the price of natgas still bumping around under $2.50/MMBtu. Bummer.
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We’ve noticed over the past several weeks a coordinated effort among Big Green groups, including the Sierra Club, Analysis Group, the so-called Resources for the Future, the Kleinman Center for Energy Policy, and others, engaged in a full-court press to try and convince Pennsylvanian’s that the Regional Greenhouse Gas Initiative (RGGI), a HUGE tax on carbon dioxide emissions aimed at closing down coal and natural gas-fired power plants in the state, won’t increase electric rates, will clean up the air, and in general, will make Pennsylvanian’s lives happier, live longer, and have better sex. (Well, they don’t mention the sex part, but it’s implied.) We can categorically say, THEY ARE LYING. The simple truth is that these groups are ALL anti-fossil energy and they seek to DESTROY the shale industry. And yes, RGGI will raise your electric rates if you live in PA.
Two weeks ago, the Bidenistas at the Environmental Protection Agency (EPA) released a hellscape of new regulations aimed at forcing coal- and natural gas-fired power plants to close (see 
Two weeks ago, the Bidenistas at the EPA issued, for a second time, new regulations aimed at controlling how much carbon dioxide (CO2, the stuff you breathe out with every breath you take) electric power plants can emit. West Virginia intends to overturn the new regulations with a lawsuit, the same as the state did last year (see 
The American Council for Capital Formation (ACCF) is a nonprofit, nonpartisan economic policy organization that tilts to the conservative side. ACCF advocates for better (and less) regulation, innovation in energy policy, dynamic free trade, and better infrastructure policy. Yesterday the ACCF released a new study that shows the U.S. natural gas market remains “robust” and will have no problem meeting both growing domestic consumption and growing exports–all at relatively low prices. A key point made by the study is that natural gas prices can be even lower, 10% lower, for both ratepayers and for LNG customers–if the government would ease permitting delays for building new pipelines.
We have incontrovertible evidence that you have been played as a dunce, a rube, if you believe burning fossil fuels leads to too much carbon dioxide (CO2) in the atmosphere, and that too much CO2 heats up the planet. For decades the left has tried to convince (force brainwash) the theory that too much CO2 causes an invisible canopy, which causes heat to be trapped, leading to global warming. Now, the very same people are claiming that too much CO2 also causes “rapid cooling” in the atmosphere, and that this cooling is even worse for Mom Earth than the effects of global warming! So we have global warming AND global cooling at the same time, from CO2, according to the “experts.”
OTHER U.S. REGIONS: Chevron buying PDC Energy for $6.3 billion; Exxon’s $100 million acquisition suggests it may drill for electric cars; NATIONAL: What new oil and gas jobs will exist in the future?; What’s driving the energy industry’s latest cycle of consolidation?; Wind farms raise temperatures at the surface level; INTERNATIONAL: What will world oil demand be in 2023?; EIA expects lower crude oil prices for the 2H of 2023 and for 2024.