• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 17 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

Zeits: Natural Gas Output In U.S. Will Dip in 2016

Average natural gas production in the mainland United States (US) is expected to fall for “the first year in a long while,” wrote energy industry analyst Richard Zeits in an article for Seeking Alpha published on Monday.

In his judgment, average natural gas production for the cautious US during the twelve-month period ending on 30 November 2016 will dip by 0.5 percent.

Additionally, Zeits claimed to be correct in his prediction made last February that the decline in rigs for the lower forty-eight states at the time represented “business as usual.” At the time, he said the industry would not see anything approaching the 350 rigs that were in production in 2014, and observed that a count of around 150 rigs “would be sufficient” for production to grow by 2 to 3 billion cubic feet a day per year.

According to data from Baker Hughes, Zeits noted the number of rigs since February has averaged at approximately eighty-three, and has remained relatively steady. The lowest count in the roughly last eight months was eighty on 3 June, and the 100-rig mark was surpassed as recently as last week.

The number of rigs stayed on the low side following an unseasonably warm February and March in the States. The horizontal and directional gas rig count were “sufficient operationally”, while underground natural gas storage will end the injection season in early November at the cusp of the “full” mark. Thus, Zeits he feels that demand for natural gas is being met despite the anticipated slight decrease in output.

Regarding the 2017 season commencing this November, Zeits feels the rig count excluding vertical rigs will overcome the 150 mark prior to June 2017. At least twenty-five vertical rigs are expected to become operational between November and next June.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News