Business Insider/Sam Woolley – The natural gas market is slowing down in every state but one.
This data shows that the price decline in all but two states is more than offset by a strong natural gas price rebound in Texas and Florida.
New data from the U.K. Natural Gas Association show that gas prices fell in all three of the big U.P. markets in November.
The decline in the first-biggest natural gas producer, New York, was a result of an unexpected surge in domestic gas production from shale gas fields.
In the second-bigest market, the second largest, California, the decline in natural gas production was due to a weak dollar, weak domestic demand, and lower gas prices.
The Natural Gas Alliance of America also found that natural gas was the most expensive gas to heat in November, even though the average cost of natural gas heating is just $1.30 per kilowatt-hour, which is slightly less than the average price of oil and coal.
The Natural Gas Price Index in November was $2.11 per kilo-hour.
“We were seeing a lot of gas prices fall, but the price rebound was a little stronger than we thought,” said Mike Miller, senior vice president of the NGA.
“Gas prices are rising.
We have to wait for the price trend to go back up and then we can be confident about the impact that we’ll see from the natural gas rebound.”
The Natural Resources Defense Council (NRDC), a public interest group, also noted that natural resources, especially coal, have become cheaper in recent years.
In the second half of this year, natural gas produced about 7.5% less than in the same period last year, according to the NRA.
Miller said the Natural Gas price rebound is also due to the fact that natural resource development is continuing to accelerate.
In 2016, about 60% of the U-verse generation capacity was built on new wells, with the remaining capacity being built on existing wells.
In 2018, the number of new wells on the market is expected to be around 100,000, up from around 150,000 in 2016.
“I don’t think we’ll ever see a time where natural gas is cheaper than coal or oil again,” Miller said.
“I think we’re going to see a return to more robust gas prices as the industry continues to invest in new facilities.”
Miller also said that the NEMA is looking forward to seeing more of a rebound in natural resources as the UP economy starts to pick up.
As natural gas continues to be priced down in the U, it will be important for utilities and energy companies to invest more in alternative energy sources, he said.
Read more from Business Insider:Natural gas prices are falling in every marketSource Business Insider article