Why did natural gas prices drop in 2023?

U.S. dry natural gas production has outpaced demand so far in 2023, contributing to lower natural gas prices. Dry natural gas production has remained at record highs in 2023, averaging over 101.0 Bcf/d each month. In the first quarter of 2023, dry natural gas production increased 7%, or 6.9 Bcf/d, from the same period in 2022.

Which sector consumes more natural gas in 2023?

However, the electric power sector, which consumes more natural gas than any other sector, used a record-high average of 30.78 Bcf/d between January and March 2023, up 8.4% compared with the same period in 2022. This increase was driven by the increased winter heating demand in the West.

Does cold weather affect natural gas consumption in 2023?

Relatively mild winter temperatures reduced demand for space heating across most of the United States in the first quarter of 2023, reducing natural gas consumption. The West Census Region was the only part of the Lower 48 states to experience relatively colder winter temperatures this winter than last winter.