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Surging prices of natural gas causing problems in US industrial sector

Surging prices of natural gas causing problems in US industrial sector

The situation does not seem like it will calm down any time soon, because USA needs to export more gas to Europe, as they need to cover the lack of supply from Russia. Europe’s supply is disturbed due to sanctions, as well as Ukraine and Russia limiting exports of gas.

Rising prices of energies are not a forecast of a very bright future, as this kind of scenario happened also in the past, which eventually led to recession. The economy shrinks, because companies want to limit their production due to high cost, which means that some people could be fired because of lower demand for work force. Many industrial companies are putting their opinion, that America should prioritize their people first and stop exporting the gas to Europe. Gas companies, on the other hand are pushing on regulators, to allow them more drilling and to expand their export capacity.

The surging demand for gas from Europe and the price of energy on the rise are showing, that the prices are not about to come down any time soon.

natural gas

Performance of the natural gas’ price in the last five years. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/commodity/natural-gas

https://globalrubbermarkets.com/2022/05/16/surging-natural-gas-prices-squeeze-u-s-industrial-sector/

https://tdpelmedia.com/surging-natural-gas-prices-squeeze-u-s-industrial-sector