By Ed Ballard
U.S. natural-gas futures have risen about 7% since the eve of the conflict in Iran. The muted market reaction, compared with surging oil prices, attests to ample U.S. supplies.
America's energy advantage could end up looking starker still. Counterintuitively, U.S. natural-gas prices could even end up being lower than they would have been had the war never happened.
That's the view of Rob West of research firm Thunder Said Energy. Here's the logic:
-- Higher oil prices encourage more oil production in the Permian Basin.
-- That means more "associated gas," a byproduct of U.S. oil production that is essentially free to produce.
-- That means the U.S. has less need to tap natural gas from the Haynesville formation, where production costs are higher, to meet its own demand.
-- "Ironically, perhaps even unjustly, the Middle East energy crisis actually reduces natural-gas prices in the U.S." writes West. He expects higher margins for U.S. producers of chemicals and liquefied natural gas as a result.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
March 20, 2026 10:56 ET (14:56 GMT)
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