Crude oil rose to its highest price in more than a year this week as production plummeted due to the oil patch’s deep freeze. Fossil fuel production, transmission and subsequent power generation were halted as drilling rigs and natural gas lines froze in places like the Texas Permian Basin – the lifeblood of America’s oil shale industry.
In 2021, EIA expects residential natural gas demand to average 12.9 Bcf/d (up 0.2 Bcf/d from 2020) and commercial demand to average 9.1 Bcf/d (up 0.6 Bcf/d from 2020). EIA forecasts industrial consumption will average 23.0 Bcf/d in 2021 (up 0.4 Bcf/d from 2020) as a result of increased manufacturing activity amid a recovering economy. Natural gas prices more than doubled in 7 months since mid- 2020 (June 22, 2020).
Outside of this week’s big chill, oil prices have steadily risen by over $25 barrel since Oct. 30th, 2020 as more of the country returns to work and school from COVID lockdowns.
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