• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 4 hours PETROLEUM for humanity 
  • 4 hours Why don't the other GOP candidates get mention?
  • 4 hours Disenfranchised people are angry people - map of global electoral systems
  • 4 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 3 hours Brexit agreement
  • 37 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 8 mins China's Blueprint For Global Power
  • 11 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 13 hours Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 9 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
  • 11 hours 5 Tweets That Change The World?
  • 12 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
Alt Text

It’s “Feast-to-Famine” For The Global Gas Industry

Oversupply and high stockpiles have…

Alt Text

Europe’s Gas Demand Soars As Dutch Giant Folds

Europe’s energy landscape will be…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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

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:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play