In recent years, investors have seen an increase in the usage of natural gas, during summer season on the northern hemisphere. While natural gas was always a popular seasonal instrument during winter times, and the heating season, it has experienced an inversion of its demand rise, as summers are getting ever-hotter.
In 2023, during the month of July, the planet has experienced the hottest month, week and the single hottest day, in the recorded history. Such increases in global temperatures, drive forward a demand for more AC systems to be installed, and used for prolonged periods of time. AC market has been one of the fastest growing markets in the 21st century, with no signs of slowing down. As they are power hungry machines, electricity demand has risen during summer time as well.
For energy industry to create additional, or excess supply of electricity, the easiest resource for that very purpose is natural gas. Due to its availability, cheapness, and adaptability, almost all of this excess demand is satisfied with burning natural gas.
This kind of demand increase, will spill over to natural gas markets, as EIA (Energy Information Administration) predicts a record high demand for natural gas to be reached in 2024, as well as next year in 2025 again. Natural gas is also heavily used as a fuel for energy transition, being “less dirty” than oil and coal. These properties make it more acceptable to most governments. Another reason it’s use is considered “green”, is the fact that the cleanest fuel available- hydrogen, is currently mostly gained through a burning process of natural gas (the so-called “grey” hydrogen).
Tags :
AcademicFX, Electricty Demand, Gas Demand, Natural Gas
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