As the Wall Street Journal reports, U.S. shale gas is a highly sought commodity, with global events contributing to higher costs. In fact, natural gas has not been so costly since before the shale-drilling boom, and trading firm Ritterbusch & Associates predicts near-term prices skyrocketing to as high as $11.90.
Whether a result of economic warfare by Russia or yet another Nord Stream repair, Russia announced plans to temporarily shut down a major fuel artery at the end of August. As CNBC reports, they followed through, claiming that “punitive economic sanctions imposed by the West are responsible for the indefinite halt to gas supplies via Europe’s main pipeline.” While this measure was supposed to be reversed in mere days, officials claim that an oil leak has forced an indefinite shutdown, threatening Europe’s gas supply just months ahead of winter.
In August, The U.S. Energy Information Administration announced an “unseasonably meager injection into storage facilities” that bloated to 12.7% of the typical deficit. This, predicts energy equities analyst Neil Dingmann, could signal a superspike in America over winter.
Global climate issues and war have ravaged the natural gas industry, and without timely resolutions, will lead to a difficult winter for many around the world. “Energy prices were the single biggest driver of inflation,” says CNN, “rising 38% in the year to August.”