Amid freezing temperatures, natural gas daily index prices have surged over the past several trading periods. Since Dec 25th, Southern Star daily index price has risen $4.12/MMBtu, posting at $6.475/MMBtu for today, Jan 3rd. Enable daily index pricing for the same time period jumped $5.00/MMBtu, posting at $7.575/MMBtu for today.
On Monday, the U.S. burned the most natural gas ever, consuming 143 Bcf of gas to beat the previous high of 142 Bcf set four years ago, as record breaking cold temperatures grip the Eastern half of the continental U.S. Tuesday’s consumption is expected to top 144 Bcf.
The record breaking cold is also impacting natural gas production. Production companies are experiencing “freeze offs” in the field from North Dakota to Texas. Pennsylvania’s Marcellus shale production has also dropped off. Overall estimated output dropped about 20%, according to industry analyst.