News Release

Mild winter weather, strong supply prompt slashed natural gas prices

Warm temperatures, record high gas supply and higher storage projections send natural gas prices tumbling

byEnverus

CALGARY, Alberta (February 1, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest quarterly FundamentalEdge report focused on global drivers for oil and gas prices in 2023, the five-year oil and gas supply and demand outlook, as well as price forecasts.

“Unseasonably warm weather, record high supply and delays to the Freeport LNG restart inflated our end-of-winter natural gas storage estimate. This higher storage projection worsens the oversupply already expected for midyear, pushing our summer price forecast down by as much as $1/MMBtu from previous outlooks,” said Bill Farren-Price, director of EIR.

Meanwhile, oil prices are expected to rise on tighter balances in the year ahead. “We expect rising oil demand in the second half of 2023 to spark inventory draws and higher prices, with a price call for Q4 an estimated $20-$30/bbl above the current forward strip,” Farren-Price added.

Key takeaways from the report:

  • Bullish oil price outlook is driven by anemic supply growth and moderate projected demand.
  • The Permian Basin will drive the most global oil supply growth, however, we expect supply will struggle to offset Russian losses and OPEC will backstop with fresh cuts if Brent prices fall below $70/bbl.
  • Gas balances have a different story as we forecast sub-$3 NYMEX in 2023 supported by record warm winter weather and strong U.S. gas supply.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing, and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser.

Media Contact: Jon Haubert | 303.396.5996

Picture of Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Enverus Press Release - Renewable diesel: Too much of a good thing?
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a report that explores the renewable diesel market, including supply-demand dynamics, key players and deal activity over...

Enverus_Press_Release_EV_Regional_Volatility_Thumbnail
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released its forecast for electric vehicle (EV) charging load growth at the Lower 48 zonal level and its...

Enverus Press Release - Natural gas emerges as premier choice for grid stability amid rising demand and coal retirements
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a new report looking at natural gas-fired generation, which is becoming more attractive to investors because of...

Enverus Press Release - EIR forecasts 203 percent capacity growth in Lower 48 states by 2050
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a new report that includes the organization’s capacity expansion model for the Lower 48 states based on...

Enverus Press Release - Upstream M&A descends to $12 billion in 3Q24
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its summary of 3Q24 upstream M&A activity.

Enverus Press Release - How much production growth can North America deliver over the next decade?
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a new report that quantifies the quality of remaining drilling inventory across key North American plays.

Enverus Press Release - Looking past the CCUS power plant pipe dream
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a report that analyzes the potential impact of the Environmental Protection Agency (EPA) greenhouse gas standards and...

Enverus Press Release - Heightened natural gas price volatility expected amid supply and demand challenges
News Release
ByEnverus

Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a report addressing natural gas price volatility related to supply, demand and midstream timing.

Enverus Media Advisory - Trump vs. Harris: A tale of two energy policies
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is inviting members of the energy industry and the media to attend a live webinar Oct. 9, 2024, at...

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert