Clear Lake Area Chamber Of Commerce: Houston Energy Update

Press release from the Clear Lake Area Chamber Of Commerce:

February 15, 2022

The closing spot price for West Texas Intermediate (WTI), the U.S. benchmark for light, sweet crude, averaged $81.66 per barrel in January ’22, up from $51.23 for the same period in ’21, according to the U.S. Energy Information Administration (EIA). January ’22 marked the fourth consecutive month for WTI to average over $70, a trend that hasn’t occurred since the fracking boom ended in ’14.

January ’22 prices averaged $77.86 per barrel at the beginning of the month before rising to $86.94 by the end. The increase was due to several Organization of Petroleum Exporting Countries and allies (collectively known as OPEC+) struggling to ramp up production, thus missing supply targets.  Also driving up prices were concerns about potential disruptions to future oil supplies due to Ukraine tensions, missile attacks in the United Arab Emirates (UAE), and political unrest in both Libya and Kazakhstan.

Demand for Henry Hub natural gas increased in January ’22 due to colder-than-normal weather in many parts of the country. Prices averaged $4.18 per million British thermal units (MMBtu) in January, up 58.3 percent from $2.64 in January the prior year.

In its February ’22 Short-Term Energy Outlook, the EIA forecast WTI to average $79.35 per barrel and Henry Hub natural gas spot prices to average $4.07/MMBtu in ’22. This information was brought to you by the Greater Houston Partnership

This press release was produced by the Clear Lake Area Chamber Of Commerce. The views expressed here are the author’s own.