The price of natural gas in summer 2023 averaged $2.93 per million BTU (MMBtu) from June to August, marking a 6% decrease compared to the same period last year. This price drop occurred despite the intense summer heat, which created high demand for electricity, especially in air conditioning systems.
Reasons for Price Decrease
Despite the increase in demand, natural gas prices this summer have decreased compared to last year. One reason for this is the increase in natural gas production as well as the rise in electricity generation from renewable sources. Solar energy generation this summer increased to 19.4 billion kilowatt-hours, and wind energy generation rose to 9.3 billion kilowatt-hours compared to last year. This increase in renewable production has reduced the need for natural gas to meet electricity demand on hot days.
Read more: The U.S. government calls for complete economic isolation of Iran
Current Situation Analysis and Forecasts
Natural gas production in the United States has reached new records, leading to an increase in gas supply to the market. It is expected that dry natural gas production will reach a record 111.2 billion cubic feet per day by 2026. This production increase in various regions, especially in the Permian Basin, which is one of the main gas-producing areas, will continue.
Additionally, natural gas reserves in the United States reached 1,906 billion cubic feet at the beginning of the 2026 injection season, which starts in April, marking a 4% increase over the five-year average. These reserves have been well maintained, especially this summer, which will help meet consumer needs during the winter season.
Read more: Macron: France participates in operations to ensure freedom of navigation in Hormuz · Record daily production of 730 million cubic meters of gas in South Pars
