U.S. natural gas prices to remain low despite increasing exports, according to AEO2018
EIA’s Annual Energy Outlook 2018 (AEO2018), released on February 6, projects U.S. dry natural gas production to generally increase through 2050 in all cases. In the Reference case, production over the projection period (2018–2050) is expected to average 2.8 trillion cubic feet (Tcf) per year higher than levels projected in a similar case in last year’s AEO (AEO2017). An increase in lower-cost resources in the Appalachian and Permian basins in the AEO2018 results in higher production levels at lower prices. In the AEO2018 Reference case, the Henry Hub spot price is projected to average 68¢ (in 2017 dollars) per million British thermal units (MMBtu) less than in a similar AEO2017 case. In addition, in all AEO2018 cases except the Low Oil and Gas Resource and Technology case, Henry Hub spot prices are projected to remain lower than $6.00/MMBtu (in 2017 dollars) through 2050..
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