Analysis of factors influencing the Henry Hub natural gas price based on factor analysis

Abstract

Abstract Henry Hub as an important transaction hub for natural gas sets the gas price standard in the USA. In this paper, the factors influencing Henry Hub natural gas prices are analyzed, and the major factors determining the price levels in the period between January 1997 and December 2016 are studied. It is found that economic conditions, total energy demand, US dollar exchange rate and gas consumption are the major factors. The mechanism of each factor influencing the Henry Hub natural gas price is also explored in the paper.

Keywords

• Natural gas
• Henry Hub
• Factor analysis