The danger is that early winter or very cold temperatures will force families to put out the fire. That could further reduce the country’s natural gas reserves and even raise prices.
Robert Yugger, the future director of energy at Mizuho Security, says: “If we have frost in the past, it can be ugly. It can be ugly. ”
“This is enough even in normal times,” said Robert McNilley, president of the consulting firm Rapidan Energy Group. But now there is a general concern about inflation. ”
“Consumers of natural gas are not paying the daily prices for the natural gas we see in the headlines,” said Jack Rubin, a spokesman for the American Gas Association, which represents natural gas utilities such as Con Edison.
AGA emphasizes that its members lock up prices and buy gas through long-term contracts that protect customers from some volatility. Rubin added that utilities will increase winter supplies by storing gas purchased months ago.
‘Tragic’ gas crisis in Europe
“It’s a tragedy,” said McNelli.
“There is no way to run out of natural gas. We will live. ”
Supply cannot meet demand
So why are natural gas prices so high? The central problem is the inability to produce natural gas when economic activity slows down. This means that demand will return faster than supply, forcing prices to rise.
Throughout the summer, the demand for heat waves is growing across the country. Warm weather raised air conditioning and demand for electricity.
The situation is exacerbated by unplanned disruptions in Norway and Russia, as well as offshore oil and gas production in the Gulf of Mexico.
“A Full Storm”
US supplies have weakened further due to high demand from overseas prices. Exports of U.S. liquefied natural gas are expected to reach 9.6 billion cubic feet per day this year, up 48 percent from a year earlier.
And then there’s Wall Street and the role of other big money traders on Wall Street. Speculators estimate that storage rates are unusually low, and have sought to increase natural gas prices.
To take full advantage of this, it was a perfect storm. He said the list is Nirvana.
The good news is that some people on Wall Street are arguing that natural gas prices are rising.
Last week, the World Bank’s “Natural Disaster Reduction Premium” for “Natural Gas Prices” has reached “extreme levels.” The bank expects natural gas prices to fall in the last three months of the year and fall next year.
Power transfer will not be easy
The rise in natural gas prices is coming at a critical time for governments around the world. Not only are they dealing with high inflation, world leaders are also trying to move away from fossil fuels.
Today’s high energy prices are a sad reminder of how addictive the world economy is to fossil fuels – and how hard it is to get rid of them.