The U.S. energy market remains in a state of transition as natural gas and electricity prices react to both domestic policy shifts and international dynamics. New federal tariffs on imported LNG have strengthened support for U.S. gas producers, helping drive natural gas spot prices up nearly 96% year-over-year. Simultaneously, surging LNG exports and rising demand from energy-intensive sectors like AI data centers and manufacturing are tightening domestic supply.
While milder spring weather has temporarily eased power prices, the outlook for 2025 points to sustained volatility, with the EIA forecasting a 7% increase in wholesale electricity costs. New solar, wind, and gas generation projects are expected to come online this year, offering some relief as the grid works to keep pace with growing demand.
