Gas production and price in the world in 2024.

Gas, this invisible ninja of our daily lives, remains essential even if its price is neither celebrating nor depressing. Whether it heats our homes or boils our pasta, it is always there, without making waves. Imagine for a moment a life without this discreet superhero... We would all meet up around a campfire in our living rooms! Let's explore the cost values ​​of this unsuspected ally.

Evolution and volatility of gas prices in 2024: regional analysis.

In 2024, gas prices show a general downward trend from the peaks reached in 2022-2023, although they remain volatile and vary by region. In the United States, the average price of regular gas is stable at €3.09 per gallon, with regional variations. In the United Kingdom and Uruguay, prices are respectively €2.20 and €1.85 per liter in May 2024. In France, despite a drop in wholesale prices per MWh of natural gas from €60 to 28.34 € between January 2023 and January 2024, costs for businesses could increase due to an increase in the TICGN (domestic consumption tax on natural gas).

The complex workings of natural gas pricing.

Many elements influence natural gas prices. On the demand side, nations' energy policy and weather play a crucial role, with colder winters boosting heating demand. Economic health also has an impact, with economic growth leading to increased energy consumption. Competition with other sources like coal and renewable energy, such as the developing biomethane, is also affecting the market. On the supply side, the price of oil, geopolitical tensions between producers and consumers, and the availability of liquefied natural gas (LNG) are key factors. Fluctuations in gas stocks, the state of production and transport infrastructure, as well as variations in the EUR/USD exchange rate for dollar transactions and the price of carbon complete this complex picture. Together, these elements determine the dynamics of the natural gas market, requiring in-depth analysis to predict its future developments.

Global natural gas market outlook in 2024.

In 2024, global natural gas production is expected to reach around 4,000 billion cubic meters (Gm³), marking a slight increase compared to 2020 when it stood at 3,890 Gm³. Despite declines observed in 2020 (-13% for the United States and -36% for Russia compared to 2019), these two countries remain the main world producers. In Africa, production is expected to continue to grow, from around 265 Bm³ in 2023 to over 280 Bm³ by 2025, with growth of 1.5%.
However, investment reductions at North American producers like Tourmaline Oil and Chesapeake Energy are announced for 2024, in response to falling natural gas prices. Global consumption is expected to remain strong in 2024, particularly in Asia and Europe, where despite a decline in 2020 (-1.8%), European demand maintains its imports of LNG (liquid natural gas).

In 2024, the natural gas market juggles geopolitical challenges and economic dynamics, like an acrobat on a tightrope. Does the future promise other policies?