US heatwave failed to lift gas prices amid rising production — OilPrice
Record July heat in the United States did not lead to higher natural gas prices: from June to August, the average gas price at the Henry Hub stood at $2.93 per million British thermal units, 6% lower than in the same period a year earlier. OilPrice reports.
According to the US National Oceanic and Atmospheric Administration, the average temperature across the 48 contiguous states reached 77°F in July, setting a record. Demand for electricity increased due to more intensive use of air conditioners, but solar and wind power plants covered a significant share of the additional load.
Growth in renewable generation
From June to August, electricity generation from solar plants increased by about 19.4 billion kWh compared with the same period in 2025, according to estimates by the US Energy Information Administration. Wind generation added another 9.3 billion kWh.
At the same time, electricity generation at gas-fired power plants rose by 7.5 billion kWh. The combined increase in solar and wind generation was almost four times greater than the rise in gas generation over the summer.
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Gas production and inventories
US dry natural gas production from June to August averaged 2.7 billion cubic feet per day, or 2%, above last year's level. The Permian Basin was one of the largest sources of growth. The Energy Information Administration expects average dry gas production in 2026 to reach a record 111.2 billion cubic feet per day.
At the start of the injection season in April, working gas inventories stood at 1.906 trillion cubic feet, 4% above the average for the previous five years. Monthly injection volumes exceeded five-year averages in every month through August except May.
Maintenance at US liquefied natural gas terminals during the summer restrained demand growth from exports, leaving more gas available for power generation and inventory replenishment. The Energy Information Administration forecasts that by the end of October, working gas inventories in the 48 contiguous states will reach 3.985 trillion cubic feet, about 5% above the average level of the past five years.
