Natural Gas Production Last Week
The EIA (Energy Information Administration) reported that total natural gas production increased slightly by ~0.2% in the week to June 5, compared to the week prior, according to data from Bentek Energy. It was ~6% greater than the corresponding week last year.
Total Marketed Production for the month of March, the latest month EIA has provided data for, was ~78.1 bcf/d (billion cubic feet per day). Marketed natural gas is the gas produced, before associated liquids like propane and butane are extracted. The removal of these liquids leaves dry natural gas.
Forecast Production Trends for 2015
The Energy Information Administration continues to be bullish about natural gas production in 2015. The EIA’s June Short-Term Energy Outlook (or STEO), released on June 9, projects total marketed natural gas production will grow 5.7% over 2014, to 78.96 bcf/d (billion cubic feet per day) in 2015, and by a further 2% to 80.56 bcf/d in 2016. It pegs total marketed natural gas production at 74.72 bcf/d for 2014.
Continued production growth may pressure natural gas prices (UNG), if demand doesn’t rise as much. Weak prices hurt gas-producing companies like Chesapeake Energy (CHK), Noble Energy (NBL), Range Resources (RRC), and Antero Resources (AR)are components of the iShares U.S. Energy ETF (IYE), and make up 2.1% of the ETF.
Natural gas inventories are governed by natural gas production and consumption trends. The next part analyzes natural gas consumption trends.