Gas Output to Drop | Russell T. Rudy Energy LLC
“Rigzone” reports that the U. S. Energy Information Administration (EIA) recently predicted that natural gas production in 2016 will drop for the first time since 2005. Back then, hurricanes Katrina and Rita damaged Gulf Coast energy infrastructure. That severely impacted natural gas production as 20% of dry gas output came from the Gulf of Mexico at that time. However, every year since then production has increased, reaching an all-time high of 74.14 billion cubic feet per day (bcfpd) in 2015. For 2016 production is expected to drop to 72.34 bcfd. This decrease has been attributed to low prices which led to reduced drilling activity, and ultimately less output.
However, the EIA predicts that in 2017 dry gas production will reach a new high of 75.06 bcfd. Fortunately, gas demand is expected to grow to record highs again next year with demand reaching 75.97 bcfpd.
The EIA also predicts that in 2017 the U. S. will become a net exporter of natural gas on an annual basis for the first time since 1957. Liquefied Natural Gas exports, as well as pipeline sales to Mexico, are expected to increase, while gas imports from Canada will decline.
Power generators are expected to burn slightly less natural gas, and more coal, in 2017 in response to firmer gas prices. Overall coal consumption is expected to be below 2015 levels due to the decommissioning of numerous coal fired power plants in recent years.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/147333/US_Natgas .
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