Near-Term Natural Gas Demand Locked and Loaded, but Tariffs, Higher Costs Cloud Supply Outlook

Intelligence on natural gas market fundamentals presented by NGI’s data and price analysts

Steel prices are rising, adding to breakeven costs and threatening to stall natural gas supply growth in the Permian Basin, where output has more than doubled in the last five years.

I reviewed dozens of earnings transcripts from the North American natural gas value chain this quarter, including several Permian Basin producers that noted a 10% price increase on steel and casings. This could impact heavily drilled areas like the Permian disproportionately, where natural gas is produced as a byproduct of oil extraction.