Latest Insight
Last Look - Natural gas falls 31c to finish below $4/MMbtu
Read More →
Latest Insight
Last Look - Natural gas falls 31c to finish below $4/MMbtu
Read More →

Commodity / Natural Gas

Exploring the Natural Gas Market

A closer look into Henry Hub, Waha, Permian Basin, Haynesville, and more.

A closer look into Henry Hub, Waha, Permian Basin, Haynesville, and more.
Market Dynamics Supply & Demand Regional Markets Future Trends 
 
OVERVIEW   

Natural gas is a crucial component of the energy market for its versatility, abundance, and relatively low environmental impact.

It is essential for electricity generation, heating, and industrial processes, offering a reliable and flexible energy source. Additionally, it serves as a crucial feedstock for producing chemicals, fertilizers, and hydrogen, solidifying its key role in the energy sector and various industrial applications.

Sudden changes in natural gas prices affect industries like

Droplet

Energy and Utilities 
Vehicle Door
Manufacturing 
Passenger Jet
Transportation
Heavy Machinery 
Agriculture 
Shoe
Retail and Consumer Goods

Market Dynamics

Market factors include the supply-demand balance, such as export demand and storage levels, as well as weather conditions, particularly during key seasons like winter and summer.
 Historical Natural Gas Strips

 

 

Henry Hub Seasonal Strips

 
WEATHER ANALYSIS 
Weather has a heavy impact on natural gas prices primarily due to its influence on heating and cooling during key seasons.   
 Lower 48 Average Temperatures

 

Heating Demand 

During cold weather, especially in winter, the demand for natural gas increases significantly for residential and commercial heating. Homes and businesses use natural gas for heating systems, leading to higher consumption. This surge in demand can push prices up, particularly in regions with harsh winters. 

Cooling Demand 

In hot weather, particularly in summer, the demand for electricity spikes due to increased use of air conditioning. Many power plants use natural gas as a fuel source for electricity generation. As a result, higher electricity demand leads to increased natural gas consumption, which can also drive up prices. 

Storage Levels 

Weather impacts storage levels of natural gas. During mild weather, less natural gas is used for heating or cooling, allowing more gas to be stored. Conversely, extreme weather can deplete storage levels more quickly. Storage levels are a critical indicator of future supply availability, influencing market prices. 

 

 

Lower 48 Natural Gas Storage

 

 

Have questions about the natural gas markets?

Ask our team

Supply and Demand Factors

While weather plays a significant role in influencing natural gas prices, various other supply and demand factors also critically shape the market dynamics. These factors identify the broader landscape of natural gas production, distribution, and consumption.   
 Call on Natural Gas Supply through 2029

 

SUPPLY & PRODUCTION
Domestic Production
The amount of natural gas produced within a country affects supply. Advances in extraction technologies, such as hydraulic fracturing and horizontal drilling, have significantly increased production capacity. 
 Lower 48 natural gas production

 

Canadian Production
Production levels, especially from Canada also impact supply. Geopolitical events and economic conditions in this area may also influence production levels. 
Western canadian natural gas production
DEMAND FACTORS 
Increased Exports
High international prices and large supply here in the U.S. have encouraged exports, allowing this factor to grow into one of the largest sources of demand in a few years. Currently about 15-20% of natural gas demand. See more information here.

 

Government Policies and Regulations
Subsidies and Incentives:  Government policies subsidizing natural gas usage or providing incentives for its adoption in various sectors can boost demand.
Environmental Regulations:  Policies aimed at reducing greenhouse gas emissions often favor natural gas over more carbon-intensive fuels, increasing its demand in power generation and industrial sectors. 
 
Power Markets 
As reliance on renewable energy sources becomes more commonplace, energy grids need on-demand power sources to fill the gaps. Natural Gas has been tapped for this task because it’s easily ramped up and sent immediately to the grid when resources like solar and wind aren’t producing enough.  

Regional Basis Markets

Natural Gas Basis Markets Across the US
Henry Hub 
Waha / Permian Basin
Appalachia
Bakken
Haynesville
Rockies

Henry Hub 
Waha / Permian Basin
Appalachia
Bakken
Haynesville
Rockies
NATURAL GAS UPDATES
Could There Be More Waha Price Pain Ahead: Then Pipeline Overbuild?

Permian gas prices face a turbulent road ahead, with stability likely only arriving once significant new pipeline capacity becomes operational in late 2026 and early 2027.

Read More →
NATURAL GAS UPDATES
2025 Henry Hub: Bullish and Bearish

While the first half of 2025, and especially the first quarter, could see loose supply-demand balances, fundamentals should tighten in the second half of the year.

Read More →
CUSTOMER SUCCESS STORY
Competitor’s Oil & Gas Customer Turns to AEGIS During Winter Storm Uri

AEGIS met with the producer and, through multiple meetings, focused on opportunities to maintain the flow of molecules and access premium pricing.

Read More →

Future Trends & Innovations

Renewable Natural Gas (RNG)  
Nearly identical to conventional natural gas, RNG is sourced from climate-friendly methane capture ranging from landfills, farms, food waste, and municipal solid waste (MSW).
RNG is one of the lowest carbon-intensity fuels on the planet making it eligible for a host of lucrative state and federal credits. 

Daily Energy Insights including Natural Gas updates

Expertise When it Matters

Actionable insights and analysis for the energy markets, including natural gas—delivered to your inbox for free.

Get instant access
^