price sensitive, page-60

Gas Price Predictions For Next 5 Years (Until 2025)

The yearly chart shows a well defined falling wedge pattern that could soon break out from resistance. A fractal from past breakouts could potentially target new all-time highs above $25.

The biggest river that will influence the gas price, especially in an upward direction, is the drive to make this fuel the largest primary energy source on the planet. It is a fuel that is greener than its other fossil fuel compatriots, and the production infrastructure is robust enough for it to become a key global fuel.

Many expect gas to become the largest primary energy source by 2034. It will also be the last of the fossil fuels to experience peak demand, which is being predicted for 2035. But, because it can operate alongside the growing uses of sustainable energy, the next five years is sure to see steady growth in its demand.

Another factor that needs to be considered, that suits this gas prediction, is a factor that many market analysts look at: gas in storage compared to five-year average. Looking at this put onto a graph over time, we can see that the volume of gas in storage divided by monthly production since 2000 is actually dipping meaning the supply may not be as robust as many think — despite the increase in production.

Dwayne Purvis, an engineering and management consultant based in Texas, explains that the gas price may be ready for a massive spike in the next five years.

“The standard frame of reference —five year range of storage—has been deformed by the extreme demands of 2014’s “polar vortex” and the chronic gas shortage, obscuring reality. For a better frame of reference, the chart below shows nearly 20 years of volumes in storage normalized to dry gas production.”

“It shows how for the better part of the last three years storage trended down as demand chronically exceeded supply. In a longer time frame, normalized storage volumes have trended downward for nearly 10 years as storage did not expand with production. These overlapping trends caused last heating season to end with only 12 days of supply in storage.”