Tropical storm Cristobal made its way up the Gulf of Mexico this weekend. That’s not abnormal for this time of year. What has changed in the past decade is the diminishing impact that such weather events have on natural gas markets and the electricity generators they serve.

Natural gas production from the Gulf of Mexico, as a percentage of total U.S. output, has significantly declined since the onset of onshore shale gas. In 2010, shale gas accounted for 27% of overall U.S. natural gas production. That number is expected to reach 49% of total output in 2035. While the impact on gas production may be muted, the growth of LNG imports adds a new wrinkle on the demand side. A multi-day Gulf Coast storm could result in a major demand interruption that could pressure prices to the downside.

Read More:

• https://www.forbes.com/sites/christopherhelman/2013/06/03/why-natural-gas-traders-dont-fret-hurricane-season-anymore/#1e8b4f803a5d
• https://www.marketwatch.com/story/hurricanes-dont-scare-natural-gas-anymore-2012-08-31
• https://www.marketwatch.com/story/hurricanes-dont-jolt-natural-gas-market-like-they-used-to-2016-04-14
• https://btuanalytics.com/natural-gas-pricing/hurricanes-target-lng-exports/