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CNBC reported that according to a study completed by IHS, natural gas prices are likely to remain cheap for “at least the next 20 years.” The company anticipates a long-term average annual price of $4 to $5 per million British thermal units.
CNBC reported that according to a study completed by IHS, natural gas prices are likely to remain cheap for “at least the next 20 years.” The company anticipates a long-term average annual price of $4 to $5 per million British thermal units.
As quoted in the market news:
‘We now have knowledge and comfort that we have an incredible resource base—technically recoverable resources of 3,000 trillion cubic feet,’ said Rita Beale, IHS senior director of power, gas, coal and renewables. ‘We have 900 tcf of gas that can be recovered for $4 or less.’
Though there could be spikes, of course, the average price should stay low, she said. There was one such spike this month, as natural gas futures surged over $6 per million Btu on cold weather and supply concerns.