Rice: Natural gas remains the most cost-effective energy solution overall

Summary

Toby Rice, CEO and President of EQT Corporation, discusses how the U.S. natural gas system handled a severe winter storm. He credits strong preparation and above-average storage but warns that inadequate pipelines and storage are causing volatile regional prices, including Boston gas above $60. Rice expects natural gas to remain volatile between $2 and $6 until infrastructure expands, while arguing gas remains the most cost-effective energy solution.

• U.S. energy industry entered the storm with storage 6% above average.
• Boston natural gas prices spiked above $60 due to infrastructure constraints.
• High U.S. prices caused about 5% of production previously headed for LNG exports to stay domestic.
• Rice expects natural gas prices to bounce between $2 and $6 until more infrastructure is built.
• He calls for more pipelines, storage, and permitting reform.
• He says calendar-year natural gas prices average $4.25, equivalent to $26 oil, maintaining gas's cost advantage.