Over the past year (July 2021–June 2022), the average monthly spot natural gas price at the U.S. Henry Hub more than doubled, rising by $3.86 per MMBtu from $3.84/MMBtu in July 2021 to $7.70/MMBtu in June 2022. The main reason for the increase would be that inventory levels have remained low while demand growth outpacing growth in domestic production.
U.S. refined coal production and consumption declines with the expiration of a tax credit
At the end of 2021, the refined coal production tax credit expired, which could be affecting refined coal production and consumption. Refined coal production in the US dropped significantly during the first quarter of 2022 as refined coal consumers used their remaining small stockpiles. The tax credit was also responsible, in part, to reduce coal-fired plant emissions.
The United States became the world’s largest LNG exporter in the first half of 2022
Comparing the second half of 2021 to the first half of 2022, LNG exports increased by 12%, averaging 11.2 Bcf/d. U.S. LNG exports continued to grow for a couple reasons—increased export capacity, increased international natural gas and LNG prices, and increased global demand (particularly Europe).
Find and download previous Market Outlook reports.