A fracking site near Midland, Texas
Letter from the US: Is oil barreling down the gas highway?
The oil markets may be poised to experience a price slump mirroring the history of the gas sector
Natural gas is ‘dirt cheap’ in the US. At the time of writing, Henry Hub spot prices were around $2.3–2.4/m Btu, which is the oil equivalent of around $15–18/bl. In fact, gas prices have been low for years (see Fig.1). The rock-bottom prices have not prevented firms from drilling, however. The efficiencies in gas production and the presence of more lucrative co-products (namely oil) have prompted firms to maintain their activities. In late September, several executives asserted that gas production would rise substantially if the Biden administration removed its restrictions. The gas price contrasts markedly with that of oil, which is hovering around $70/bl. Company executives, analysts and o
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
