U.S. natural gas prices last week plunged to a 30-month low, crossing below $2 per million British thermal units (mmBtu) for the second time this year, even as some producers have cut drilling to stave off further convulsions.
are reducing their drilling. But gas that comes up with oil will continue to rise in the biggest shale fields. And oil producers are not cutting back.
So, while U.S. gas futures were down by 50% in the first quarter of 2023, at $2.22 per mmBtu, they are not low enough to forestall output gains, say analysts. Projected U.S. gas usage, including exports, will ease to 107.3 bcfd this year from a record 107.4 bcfd last year due to expected declines in domestic consumption from residential, commercial, industrial and power generation customers.
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