• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 33 mins The EU Loses The Principles On Which It Was Built
  • 5 hours Starvation, horror in Venezuela
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 hours Crude Price going to $62.50
  • 21 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 58 mins WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 14 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 1 day Oil prices---Tug of War: Sanctions vs. Trade War
  • 1 day Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day Monsanto hit by $289 Million for cancerous weedkiller
  • 17 hours < sigh > $90 Oil Is A Very Real Possibility
  • 29 mins Saudi Arabia Cuts Diplomatic Ties with Canada
Alt Text

The U.S. Remains The Natural Gas King

The U.S. remained the global…

Alt Text

Is This The Next Natural Gas Giant?

Nigeria has long been renowned…

Alt Text

Ghana Boosts Natural Gas Production

Momentum in Ghana’s hydrocarbons industry…

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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