USA is the largest manufacturer of natural gas – it may face big problems, since gas prices in the region beat perennial records, and the capacity of “clean” energy is not enough due to past natural disasters. According to Reuters, analysts predict further increase in the cost of fuel against the background of energy crises in Europe and China.
The cost of November gas futures at Hub Hube Hub in the United States reached a mark of 5.831 dollars per million British thermal units (which is equivalent to about $ 208.7 per thousand cubic meters).
The energy crisis has threatened the restoration of China’s economies and European countries. The United States nevertheless has been protected from natural gas-related problems, since a large amount of this type of fuel is mined within the country and only a small part goes to export.
However, the record rise in prices is caused by concern in California and New England (so-called Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont in the northeast of the United States). In these two regions, the expected cost of gas is much higher than the average price of the country. In California, continuous drought limited the generation of electricity to the HPP, and the smoke veil due to forest fires reduced the production of energy in solar power plants. As a result, the winter on gas will account for about 45 percent of energy generation. However, California, in contrast to New England, will be able to get gas from other US regions.
And in New England, five percent of the total liquefied gas consumed in winter comes in foreign shipments, which will cost the region more expensive due to competition with Europe and Asia. At the same time, 49 percent of the generation of electricity is expected to be 49 percent of the generation of electricity. Some power plants have another option – go to oil. However, now it is three times more expensive than gas, and the transition will be economically justified only in the event of a significant increase in gas. In addition, when burning oil, it stands out about 30 percent more carbon dioxide, and the United States seeks to reduce its carbon footprint. But in 2017, due to extreme cold weather in New England, the share of oil has already increased in total electricity generation with less than one percent to 27 percent in just one month.
Europe has already encountered a record price of gas, because of which the energy crisis has begun in the region. So, on October 1, the price of gas for the first time in history exceeded $ 1,200 per thousand cubic meters. At the same time, fuel is becoming more expensive every day – another September 30, gas cost $ 1098 per thousand cubic meters.