Natural gas is one of the most volatile commodities in the world—and the history of its price movement tells the story of how global, national and local events ripple through the energy market.
Below is a look at some of the defining energy events in the U.S. over the past two decades—and what they mean for businesses buying energy today.
The Early 2000s: Technical Trading & Enron’s Collapse
The early 2000s marked a turning point for energy markets. After the collapse of the energy company, Enron, in 2001 due to fraud, investor confidence and market transparency were shaken. At the same time, gas prices experienced sudden technical trading spikes and weather-driven surges, highlighting just how sensitive the market was to speculation and short-term events.
Mid-2000s: Hurricanes & Energy Shocks
Natural gas markets are particularly vulnerable to weather. The mid-2000s saw massive spikes from Hurricanes Ivan, Katrina and Rita, which shut down Gulf of Mexico production and caused prices to soar. At the time, the Gulf of Mexico produced 27% of oil and 20% of natural gas to the United States. Hurricanes Katrina and Rita ultimately destroyed 113 platforms and 8 drilling rigs. Businesses relying on fixed purchasing with no strategy often absorbed enormous costs.
2008–2010: Recession & the Shale Revolution
During the 2008 financial crisis, rising unemployment caused less demand for oil from both consumers and businesses. This brought the price of a barrel of crude oil from $133.88 down to $39.09 in less than a year.
But the real market shift came with the Shale Era. Advances in hydraulic fracking and horizontal drilling unlocked abundant domestic supply. This new production of energy fundamentally restructured the market, driving prices lower and creating a period of relative stability.
2010s: Weather Volatility vs. Supply Growth
Despite shale’s stabilizing force, weather remained a wild card. The Polar Vortex of 2014 resulted in record-high electricity and natural gas demands leading to power outages and price spikes.
After the vortex subsided, periods of record warmth and high inventories highlighted the tug-of-war between natural gas supply growth and unpredictable demand shocks. Companies that diversified purchasing strategies fared better than those relying on last-minute buying.
2020–2022: COVID-19, Recovery and Crisis
The pandemic initially brought record inventories and lower prices due to less demand from large businesses. But, as economies reopened, demand spiked.
The European energy crisis in 2022 due to Russia’s invasion of Ukraine resulted in record-high energy prices and supply disruptions . For many companies, this period underscored the danger of assuming energy costs will stay flat year to year.
Today: The Liquefied Natural Gas (LNG) Export Era
The U.S. is now a global player in LNG exports, linking domestic prices more directly to global markets. In 2023, the U.S. became the world’s largest exporter of LNG by volume.
U.S. LNG production has made the global natural gas market more interconnected leading to flexible pricing and increased trading activity. According to Reuters, U.S. LNG exports are expected to rise by 10% each year through 2030.
What This Means for Your Business
The lesson across decades is clear: energy markets don’t stand still. From hurricanes to recessions to global crises, gas prices respond to forces outside any single business’s control. That’s why buying energy smart matters.
At Energy CX, we help you navigate this volatility—treating energy like an investment, backed by data, timing and strategy. Book a meeting with us today to see the difference in how buying energy smarter can benefit your business.