• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 3 hours U.S. Withdraws From U.N. Human Rights Council
  • 3 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 7 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 hour What If Canada Had Wind and Not Oilsands?
  • 8 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 52 mins Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 3 hours "The Gasoline Car Is a Car With a Future"
  • 2 mins EVs Could Help Coal Demand
  • 8 hours WE Solutions plans to print cars
  • 9 hours Gazprom Exports to EU Hit Record
  • 4 hours Saudi Arabia turns to solar
  • 5 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 13 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 23 hours Oil prices going down
  • 1 day Are EVs Safer Than Combustion Engine Vehicles?
Alt Text

The Permian Faces A Long Term Natural Gas Crisis

Bottlenecks in the Permian have…

Alt Text

Why LNG Prices Are Poised To Soar

Global liquefied natural gas prices…

Alt Text

Australia Looks To Tackle Its Looming Gas Shortage

The world’s soon-to-be top liquefied…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

EIA Expects Uptick In U.S. NatGas Production As Prices Soar

Natural Gas Storage

Embattled U.S. natural gas producers have a reason to perk up: the Energy Information Administration has forecast that natural gas production in the country over the second half of the year will increase, stimulated by a continuing rally in gas prices.

The average spot price of natural gas at Henry Hub in June was US$2.52/mmBtu, up over 30 percent from May. The increase came on the back of greater demand from the power generation sector and lower production. The June price was also the highest monthly average since September last year.

Though the news is good in that it could encourage producers to lift output, higher prices could eventually have a negative effect on demand, with power plants switching to coal to save money. Still, overall consumption is growing persistently, the EIA said, estimating the 2016 average to be 76.5 bcf a day, compared with 75.3 bcf/d last year. The average for 2017 is projected at 77.7 bcf/d. Besides greater demand from power plants, rising gas exports are also a factor contributing to the price rise.

The EIA has projected that the U.S. is on track to become a net natural gas exporter by the second half of 2017, with shipments to Mexico on the rise as well as LNG exports from the Gulf coast. The administration forecast a 700 mcf daily increase in pipeline exports in 2016, which will slow down to 200 mcf in 2017 to reach a daily average of 5.3 bcf. Demand from Mexico will be the key driver of the increase, as power plant gas consumption there is growing, while local production is stalling. Related: Is China’s Silk Road Fund About To Make A Big Move In Gold?

LNG exports following the start of operation at the Sabine Pass liquefaction plant in Louisiana should rise by an average 500 mcf per day this year, and 1.3 bcf a day next year.

Gas imports, on the other hand, are seen to drop from 2.6 bcf a day last year to 200 mcf in 2017, the EIA also said in its Short-Term Energy Outlook.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News