Projections for the Henry Hub price of natural gas vary significantly depending on economic growth and the level of oil and gas reserves. Source: US Energy Information Administration.
“Dropping natural gas costs are, in large part, deterring retrofits of existing gas burning equipment because there is no reasonable payback associated with the capital expenditure of retrofits,” explains Mary Frances Stotler, sustainability coordinator for The Dennis Group. “The flip side of the coin is that low natural gas costs are influencing fuel switching for new equipment, shifting the market from electric to gas where practical.”