The coming winter is expected to bring higher average natural gas prices into 2025 that help stabilize production, but the supply and demand balance could still be fragile, especially for regional markets such as the Midwest.
A lot could be riding on the upcoming heating season, or rather the cold weather it brings, natural gas market energy experts said at the LDC Gas Forum Mid-Continent in Chicago earlier in the month. Storage rates across the country continue to float well above years’ past levels while Henry Hub and regional natural gas prices have remained near record lows.
Producers have been conversely pulling back drilling in key dry gas basins while awaiting a recovery in prices, which should be on the way in the coming months, East Daley’s Jack Weixel, senior director of energy analysis, told NGI.
