The U.S. Energy Information Administration (EIA) headline this week read: U.S. Henry Hub natural gas prices in 2023 were the lowest since mid-2020

You can see what they mean in the chart below:

It is not going to change in 2024. The volume of gas in storage, going into this winter, is well above the five-year maximum. It hit 3.48 trillion cubic feet on December 29th, a year ago it was 2.92 trillion cubic feet. The five-year average is 3.08 trillion cubic feet in storage.

That’s because natural gas production skyrocketed in the past decade. The latest daily production data (from October 2023) is 56% higher than the same time a decade ago. It’s the largest volume of gas production in U.S. history. 

That massive supply is the reason the price fell again. That’s actually great news for the environment. Cheap natural gas helped push out coal as a fuel for electricity. It’s the reason that in 2024, renewable energy will supply more electricity than coal for the first time ever.

That’s a huge milestone for our New Energy investment thesis. As renewable energy continues to expand it opens many doors for investors. That’s what we will focus on in 2024.

For the Good,
The Mangrove Investor Team