Monday, March 12, 2012

Real Natural Gas Prices Lowest Since July 1995

Last week the spot price of natural gas (Henry Hub Gulf Coast) fell to $2.30 per million BTUs, which is the lowest inflation-adjusted price since July 1995, more than 16 years ago when the price was slightly lower at $2.17. Without adjusting for inflation, it was the lowest price in a decade, since January 2002. Welcome to the game-changing, shale gas revolution.

As Scott Grannis commented, "If there is any reason to be optimistic about the future of the U.S. economy, [falling natural gas prices] is arguably the best."