Natural gas is a combustible fossil fuel that is widely used for heating and electricity production. As a result, the price of natural gas affects nearly every sector of the economy. This makes forecasting natural gas prices an important task for economists and investors alike. As part of this ongoing effort, a number of organizations have released their outlooks for natural gas prices for 2023.
U.S. Energy Information Administration Outlook
The U.S. Energy Information Administration (EIA) is a government agency that provides energy data, forecasts, and analysis. According to the EIA’s 2019 Annual Energy Outlook, natural gas prices are expected to remain relatively low through 2023. The EIA forecasts that Brent crude oil prices will average $66 per barrel in 2023, while natural gas prices will average $2.86 per million British thermal units (MMBtu). This would represent a slight increase in natural gas prices from the current level of $2.76/MMBtu.
International Energy Agency Outlook
The International Energy Agency (IEA) is an intergovernmental agency that provides analysis on the energy sector. The IEA’s 2019 World Energy Outlook projects that natural gas prices will remain relatively low through the early 2020s. The IEA forecasts that Brent crude oil prices will average $75 per barrel in 2023, while natural gas prices will average $3.06/MMBtu. This would represent a slight increase in natural gas prices from the current level of $2.76/MMBtu.
Wood Mackenzie Outlook
Wood Mackenzie is a global energy research and consultancy firm. The firm’s 2020 Global Gas Outlook forecasts that natural gas prices will remain relatively low through 2023. Wood Mackenzie forecasts that Brent crude oil prices will average $68 per barrel in 2023, while natural gas prices will average $3.00/MMBtu. This would represent a slight increase in natural gas prices from the current level of $2.76/MMBtu.
Conclusion
The outlooks from the EIA, IEA, and Wood Mackenzie all point to natural gas prices remaining relatively low through 2023. This is good news for consumers and businesses that rely on natural gas for energy. However, it is important to note that these forecasts are subject to change based on a variety of factors, such as changes in global demand and supply, political events, and weather patterns.