U.S. Report Projects Rising Natural Gas Prices Over Next 2 Years
From the Pittsburgh Post-Gazette:
Marcellus Shale drillers who have had to cut costs and disassemble rigs because of recent record-low natural gas prices should expect a reprieve over the next two years, according to the latest projections from the U.S. Energy Information Administration.
The average price of natural gas is expected to increase by almost a dollar in 2013, hitting $3.74 per million British thermal units.
That's a significant jump from the $2.75 average seen last year, when accelerated drilling created a glut in supply that caused prices to drop and made drilling in many places unprofitable. Increases are expected to continue into 2014, when prices are predicted to hit $3.90.
The EIA report released Tuesday is the first look into 2014 for the domestic and international energy scene, and it includes projections that could affect gas and coal activity in Pennsylvania and surrounding states.