Natural gas prices are already at their lowest in two decades and may be going lower. Purdue University energy economist Wally Tyner says abundant supply is driving down prices.
Tyner says the price of natural gas in December is the lowest it has been since 1994, however consumers will not see the full benefit of the lower price this winter. He says that is because most of the natural gas that will be delivered this winter has already been contracted.
Tyner says that likely means home heating costs will be lower next winter. He says there are several supply-and-demand drivers that are keeping natural gas prices so low, including the increase in fracking and the increase in oil and gas drilling efficiency.
Gasoline prices are also expected to remain relatively low, according to Tyner. He says he expects gas to remain within the $2 to $2.50 per gallon range for much of 2016. Tyner says gas price prospects depend on what happens to the price of crude oil which he expects to stay low for 2016.