Europe’s energy crisis is forcing up the price of U.S. natural gas – Axios

by | Aug 24, 2022 | Energy

Europe’s natural gas crisis is spilling into American markets. Driving the news: U.S. natural gas prices briefly hurdled $10 per million British thermal units (BTUs) on Tuesday, the highest since 2008. They are up more than 150% this year. The move comes amid an astounding rise in European natural gas prices, as a once-unthinkable cessation of Russian supplies to the continent appears imminent. European natural gas costs are more than 10 times higher than last year’s level, putting immense pressure on companies, consumers and governments.Why it matters: High prices in Europe are also affecting the U.S. market, and will almost certainly push electric and heating bills higher. How it works: With less Russian gas available, Europe is now competing on the global market for supplies, which is pushing up prices worldwide.Winners: U.S. gas producers are sitting pretty. Their stock prices have been among the best-performing in the market over the last month.Devon Energy, for example, is up 28% over the last month. ConocoPhillips is up 22%. Losers: Consumers, who will almost certainly see their utility and/or heating bills rise sooner or later. That impact could be delayed for those whose power is supplied by regulated utilities. These companies typically have to apply to a public commission for approvals of rate increases every few years. What they’re saying: Those who rely on natural gas for their heat — about half the homes in America — could feel the pinch sooner, says Joshua Rhodes, an energy consultant and research associate studying energy systems at the University at Texas, Austin.”In general, consumers feel natural gas prices fastest on their heating bills,” Rhodes said. What we’re watching: The political impact of heating bills heading into the fall and winter, which could reinvigorate voter angst about rising costs of living, despite progress elsewhere on inflation. …

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