U.S. Electricity Prices Could See Greater Link to Crude Oil Price Levels as LNG Imports Rise
Posted on Mar 18, 2008 in Markets and Competition, Regas Terminals & Capacity | Comments Off on U.S. Electricity Prices Could See Greater Link to Crude Oil Price Levels as LNG Imports Rise
In a piece examining the status of the regulatory review process for the Broadwater LNG terminal proposal, U.S. News and World Report states that Steven Specker, president and chief executive of the Electric Power Research Institute, predicted that the price of electricity and crude oil could become increasingly linked as LNG accounts for a greater percentage of U.S. natural gas supplies. Specker went on to say that it is possible that a situation could arise where “the [LNG] price goes down and is delinked from oil for a few years. That will just be a head fake because, by 2012 and 2015, we may find ourselves in a real difficult situation.”