US Faces Natural Gas Price Shock by Mid-2028, Expert Warns
Financial expert Matt Smith warns that the US is heading towards an unprecedented natural gas shortage by the second half of 2028, which will lead to a significant increase in prices. According to Smith's analysis, the current forecasts for natural gas prices are too low and do not account for the rapid growth of demand from liquefied natural gas exports and data centers.
The US relies heavily on natural gas for electricity generation, with 41% of utility-scale power coming from this source in 2025. When natural gas prices rise, it has a ripple effect on other industries such as food, fertilizer, plastics, steel, cement, and pharmaceuticals, which are all dependent on electricity.
Smith's modeling shows that the US will deplete its natural gas storage in an unprecedented way by 2028 and exhaust working storage by 2030. He emphasizes that this does not portend a modest price increase but rather a major crisis.