North America gas: 2022 in review

At this time last year, the North American gas market had just exited two years of highs and lows — oversupply and production declines that occurred at the outset of the Covid-19 pandemic in 2020 and escalating prices that accompanied the accelerated demand recovery that followed. One might have expected a calmer year to follow in 2022, but that was not the case. In this note, we recap several key trends that shaped an extremely volatile 2022 in the North American gas market: Henry Hub’s exposure to global gas prices Impacts of the Freeport LNG explosion and prospects for future LNG export growth North American production trends amid continued capital discipline The direction of recent pipeline buildout The IRA’s effect on the future of natural gas