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Flames from a flaring pit near a well in the Bakken Oil Field. The primary component of natural gas is methane, which is odorless when it comes directly out of the gas well. In addition to methane, natural gas typically contains other hydrocarbons such as ethane, propane, butane, and pentanes.
Orjan F. Ellingvag | Corbis News | Getty Images

Natural gas prices have doubled this year and are expected to continue to rise, resulting in larger winter heating bills for some consumers and higher costs for electric utilities.

Natural gas is plentiful in the United States and has been cheap for years, so the jump in prices this year is eye popping. It has also lifted the shares of companies that specialize in natural gas production, like EQT, Range Resources, Cabot Oil and Gas and Antero Resources.

In the futures market, the natural gas contract for October rose above $5 per one million British thermal units, or mmBtus, for the first time since February, 2014. Besides electricity and heating demand, natural gas is an important feed stock and is used in the processing of chemicals, fertilizers, paper and glass, among other products.

“We haven’t had tight supplies of natural gas in years. We’re staring that down this year,” said John Kilduff, partner with Again Capital.

Natural gas prices have been caught in their own perfect storm, of lower supplies and rising demand. Prices raced higher, first as unprecedented heat stoked air conditioning demand across the U.S., particularly in the Northwest. As a result, less gas was put into storage for winter months, during the key summer injection period. 

Add to that any colder than normal winter weather and prices could jump more. “Anything closer to [or colder than] a full standard-deviation form average would likely trigger a price spike to cause demand destruction with gas above $10/mmBtu,” Goldman Sachs analysts note. Gas prices were last that high in 2008.

Kilduff said natural gas is tied tightly into the economy, and for a long period prices did not matter. Now, utilities will pay more and so will some consumers who have real time pricing schemes. “You could easily see it reach $6 and you could see it get to $8 to $10,” he said. “Any early season cold weather outbreak will juice this thing.”

The upward pressure on gas prices is global, and since the U.S. is an exporter, prices in North America are now more influenced by prices in other markets.

“We’ve seen it all over the last year with the pandemic. We saw natural gas prices around the world at $2. It was $2 here in the U.S., $2 in Europe and $2 in Asia,” said Cheniere Energy CEO Jack Fusco on CNBC. “As the economies began to ramp back up, and countries and companies worldwide decided natural gas was the fuel of choice for clean energy transmission, the demand has just skyrocketed.”

Fusco said prices for the same gas that is $5 in the U.S. is now $20 or more in Europe and Asia. He also said his company, which exports liquified natural gas, is sold out of 90% of its production for the next 20 years.

Now, the U.S. industry is also suffering from lower production due to Hurricane Ida, with 77.3% of Gulf of Mexico production still shut in. According to the Energy Information Administration, the level of gas in U.S. storage is 7.4% below the five-year average and 16.8% below the level last year at this time.

The dynamic of rising demand and lower inventories has been attracting investors into the shares of natural gas producers, as well as the United States Natural Gas Fund ETF.

“I look at the natural gas situation. The storage levels are way below historic norms,” said Leon Cooperman, chairman and CEO of the Omega Family Office. Cooperman said on CNBC Thursday that his biggest positions are contrarian holdings in the energy market.

Natural gas prices are flaring as the Biden Administration is pressing for higher dependencene on renewable energy in the electricity market. On Wednesday, the White House called for solar energy to power nearly half the electric grid by 2050. It is now just 3% of the power supply.

But natural gas is likely to remain an important fuel for years to come. The EIA, in its short-term outlook, said natural gas should provide 35% of power generation in 2021 and 34% in 2022. The government forecast the average price of natural gas this year will be $4.69 per mmBtus.

The EIA said the share of natural gas as a generation fuel will decline through next year because of the anticipated increase in renewable sources, but also coal.

“As a result of the higher expected natural gas prices, the forecast share of electricity generation from coal rises from 20% in 2020 to about 24% in both 2021 and 2022,” according to EIA. “New additions of solar and wind generating capacity are offset somewhat by reduced generation from hydropower this year, resulting in the forecast share of all renewables in U.S. electricity generation to average 20% in 2021, about the same as last year, before rising to 22% in 2022.”

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Hyundai recalls more than 145,000 EVs

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Hyundai recalls more than 145,000 EVs

Hyundai Motors is recalling 145,235 EVs and other “electrified” vehicles in the US, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.

The NHTSA announced this morning that the recall affects selected IONIQ 5 and IONIQ 6 EVs, as well as certain luxury Genesis models, including the GV60, GV70, and G80 electrified variants, from the 2022-2025 model years, Reuters reported.

2025-Hyundai-IONIQ-5-prices
2025 Hyundai IONIQ 5 (Source: Hyundai)

It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.

If you’re an owner of one of these Hyundai models dating 2022-2025, stay tuned. Hyundai has not yet provided a timeline as to when affected vehicles will be repaired.

To make that happen, the company’s dealers will inspect and replace the charging unit and its fuse if necessary, NHTSA said. Free of charge, of course.

Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US, Hyundai reported.


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Tesla brings ‘Actually Smart Summon’ to Europe and Middle East where FSD is limited

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Tesla brings 'Actually Smart Summon' to Europe and Middle East where FSD is limited

Tesla announced that ‘Actually Smart Summon,’ its autonomous driving feature that enables moving its vehicles without anyone inside over short distances, is now being launched in Europe and the Middle East.

The automaker’s Full Self-Driving suite of features has been limited in those markets due to regulations and Tesla’s focus on making them work in North America first.

Actually Smart Summon is the vision-only version of Tesla’s “smart summon” feature, which was released years ago on Tesla vehicles with ultrasonic sensors.

When Tesla transitioned away from ultrasonic sensors, Smart Summon was one of the missing features that Tesla had yet to adapt to the vision-only (cameras and neural nets) system.

CEO Elon Musk said that it would be coming in 2022, but it finally came only a few months ago, in 2024.

However, that’s only in North America where Tesla focuses its Full Self-Driving (FSD) development, the feature package that includes Actually Smart Summon, also referred to as ‘ASS’.

Most of Tesla’s other markets, including Europe, don’t have the same capabilities under the Full Self-Driving package. That’s partly due to regulations, but Tesla also focuses on making the features work on North American roads first.

Now, Tesla has announced that its Actually Smart Summon feature is launching in Europe and the Middle East:

The feature can only be used on private roads, like parking lots and driveways. Most people have used it to bring their vehicles parked in a large parking lot to them as they exit a store or restaurant. However, the vehicle moves quite slowly under the feature and the owner needs to keep an eye on it at all time and be ready to cancel the summon as Tesla doesn’t take any responsibility for accidents caused by using Actually Smart Summon., like all other FSD features.

Therefore, most people I know who have the feature, myself included, tried once or try to see or impress some friends who have never seen a car move without anyone inside and then stopped using it.

The feature’s main useful use-case is for people with extremely tight parking spots. It enables them to exit the vehicle before it is in its final parking spot and then move the car in and out remotely.

However, that has been the case for years with the regular Smart Summon, as you generally don’t need the vehicle to handle complex parking lots. You mostly need it to move a few feet forward or backward.

But a recent update has broken this feature for some people. We recently reported on a very unfortunate situation that resulted in a Tesla owner having to get out of his car through his trunk.

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Big auto learned its lesson? It’s begging Trump not to blow up emissions rules

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Big auto learned its lesson? It's begging Trump not to blow up emissions rules

US Automakers are planning to ask Mr. Trump to retain President Biden’s EPA exhaust rules, in the face of signs that Mr. Trump might try to reverse them. If the rules are reversed, it would cost Americans hundreds of billions of dollars and thousands of deaths per year.

Interestingly, this is the opposite of what big auto did the last time a reality TV show came to the White House – signaling that they have perhaps learned their lesson this time ’round.

First, some history.

In the middle of the 20th century, the effects of human activity on the atmosphere became readily apparent. Certain cities – with Los Angeles among the forefront – were choked by smog, and it was soon found out that vehicle pollution was the primary reason for this smog.

Since Los Angeles was one of the most smog-choked cities, California led the way on clean air regulation, creating the California Air Resources Board in 1967 (under then-Governor Ronald Reagan).

The federal government gave California special dispensation to set stricter regulations than the rest of the country, in recognition that it had a unique smog problem in its primary metropolis. California has retained this dispensation, in the form of a “waiver,” since then. And other states can follow California’s rules, but only if they copy all of the rules exactly.

Thus, there have been two separate sets of clean air regulation in this country since then – the federal rules, and then the “CARB states” which follow California’s rules.

In 2012 that finally changed, when President Obama’s EPA negotiated with California to finally harmonize these standards and also implement higher fuel efficiency nationwide. This would have been a huge boon for both industry and consumers, saving money and giving regulatory certainty to the auto industry.

But then, in 2016, the candidate who got the 2nd most votes in the presidential election was headed for the White House. And automakers responded by immediately lobbying to torpedo these standards, even before inauguration.

Now, you might think that asking a profoundly ignorant individual, who ended up staffing the EPA with bought-and-sold science deniers (huh, that would never happen again would it?), to change rules which had already been set through years of negotiation and lobbying was not a great idea. And you’d be right.

Not long after automakers had the dumb idea to ask an idiot to fix something that wasn’t broken, that idiot went and broke things further, fracturing the agreement between California and the federal government and ensuring less regulatory certainty for automakers.

After realizing their blunder (which they could have avoided by, y’know, thinking at all about it beforehand), big auto relented and asked the government to please not implement the rollbacks automakers had asked for. Some companies even forged their own agreement with California.

But it was too late, and we are now back in the era of disparate regulatory regimes – something which John Bozzella, head of the Alliance for Automotive Innovation (formerly called Global Automakers), keeps complaining about these days, despite having lobbied for exactly this in the first place.

The US EPA and California are still not fully harmonized, but both released recent new standards which do have somewhat similar targets. If a manufacturer builds towards one set of rules, they’ll probably not be too far off from meeting the other.

So in the end, we did get better emissions regulations and California has continued to push forward with clean air regulations, thus signaling a failure on the part of Mr. Trump to cause the long term harm to Americans that he and his oil industry solicitors so desperately seem to desire.

The most recent EPA standards, finalized in March (after being softened at the auto industry’s request), do not mandate any particular powertrain, but rather require steep emissions cuts – and EVs are the easiest way to achieve lower emissions.

Notably, Tesla lobbied in favor of making this last set of standards stronger, and they also lobbied against ruining the Obama/CA standards in 2016 – being one of very few automakers who were on the correct side of that discussion.

Despite that the President Biden EPA’s rules do not mandate any particular powertrain, Mr. Trump, in his usual ignorance, has said that he will end the nonexistent EV mandate. And now that he has received more votes than his opponent for the first time (after three tries, and despite committing treason in 2021 for which there is a clear legal remedy), it looks like the upcoming EPA might be directed to end these emissions cuts and fuel/health cost savings for Americans.

But in this instance, it sounds like the automakers might actually do the right thing for once, and ask the government not to do any rollbacks, and instead let them continue on with the plans without disruption from a convicted felon who seems determined to cede a US EV manufacturing boom back to China.

Detroit’s Big Three automakers – GM, Ford and Stellantis – are all reportedly trying to figure out how to ensure that these rules stay in place. The mentality is that constantly changing regulations are not beneficial for companies – particularly in the auto realm, where models take on the order of 7 years to plan and execute. Long-term planning is important for the hundreds of billions in manufacturing investment that EVs have attracted in the US during Biden’s EV push.

These attitudes are notable, given that this is not what automakers did in 2016/2017. That time, they compulsively pushed for fewer regulations, and now they are asking for regulations to remain in place.

It’s further notable that Tesla CEO Elon Musk, whose company lobbied strongly in favor of emissions cuts and makes more use of the federal EV tax credit than any other company, is now allied with the very entity that’s looking to harm EVs. It seems that we have entered opposite world.

So it remains to be seen where we will go from here – on the one hand, doctorsnursesscientists, environmental groupsmany businessespeople who recognize that they have lungs which they would like to continue using, and so on, generally support the strongest regulation possible. Now, automakers have been added to the pile asking for strong regulations.

On the other hand, a former reality TV host – tagged along with by the CEO of the company that has sold more electric cars than any other – seem determined to kill electric cars, despite the harm that would cause to Americans’ pocketbooks and health insurance premiums. And that famously vindictive character may be even more spurred towards this harmful course of action after failing in his efforts the first time.

Who ya got?


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