Executives in the energy breadbasket of the United States are forecasting Henry Hub natural gas prices to average $4.06/MMBtu at the end of 2022, according to the latest quarterly survey by the Federal Reserve Bank of Dallas.
The Dallas Fed, as it is known, every three months surveys exploration and production (E&P) companies and oilfield services (OFS) firms headquartered in the Eleventh District, which encompasses Texas, Northern Louisiana and southern New Mexico. For the latest survey, 134 executives responded, including 90 E&Ps and 44 OFS firms.
The survey, conducted Dec. 8-16, queried executives about capital expenditures (capex) plans and commodity prices, among other things. They also were asked for their outlook on prices for goods and services. Overall, the region’s oil and gas sector continued to grow in the final three months, executives said.
“The business activity index, which is the survey’s broadest measure of conditions facing Eleventh District energy firms, remained elevated at 42.6, essentially unchanged from its third quarter reading,” the Dallas Fed’s researchers said.
Is Henry Hub Predicted To Strengthen?
Executives from 129 firms offered their forecast for year-end 2022 Henry Hub gas. Spot prices averaged $3.76 during the survey period.
While more than 30% predicted the average gas price outlook would be $4.00-4.06, slightly fewer forecast prices would average $3.50-3.99 by the end of 2022. Close to 5% expect the gas price to exceed $6.00 by the end of next year.