Despite recent hurricane damage to natural gas supply infrastructure along the Gulf Coast, the current decline in prices is the result of more than just those events, including moderate temperatures, lower crude oil prices, and uncertainties about future economic growth, according to information from the Department of Energy (DOE).
At the same time, DOE pointed out that worsening economic conditions add significant uncertainty to projected prices, particularly for the industrial sector.
DOE currently estimates that the Henry Hub spot price is expected to average about $9.67 per thousand cubic feet (Mcf) in 2008 and $8.17 per Mcf in 2009, compared with $7.17 per Mcf in 2007, according to DOE's Short-Term Energy Outlook released October 7.
Natural gas consumption in the industrial sector is expected to increase by 1.0 percent in 2008 and 1.1 percent in 2009.