U.S. natural gas prices in 2015 were at their lowest since 1999, despite a dramatic increase in use of the fuel in the power sector.
The U.S. benchmark natural gas price averaged just $2.61 per MMBtu, although it dropped considerably lower than that at points during the year.
Natural gas surpassed coal as the leading fuel source for electricity for at least five months of 2015, according data from the Energy Information Administration. Through September, natural gas had generated 32 percent of overall electricity, compared to coal’s 34 percent.
That increased natural gas use in the power sector was partly offset by a decrease in residential and commercial use of natural gas, largely because of warmer weather last year.
Overall, natural gas production was up in 2015 by more than 6 percent, even though rig counts ended the year at half what they were at the start.
Natural gas prices at Wyoming’s Opal hub are hovering around $2.50 this week, up from less than $2 in mid-December.
