Natural gas production
Natural gas production from the lower 48 states in the US rose week-over-week. Production rose slightly by 0.30% to 80.21 Bcf (billion cubic feet) per day for the week ending July 21, 2015—compared to the previous week. The natural gas output was also 3.80% more than the last production of 77.3 Bcf per day.
Dry production and well head production also rose for the week ending July 21, 2015. Dry production is 3.20% more than the levels in 2014. Likewise, natural gas production from well head production is 3.80% more than the level last year. The consensus of rising production will continue to put pressure on natural gas prices and widen the gap between supply and demand.
The demand from electric power plants will boost the demand for natural gas in 2015. Gas deliveries to electric power plants will play a vital role in supporting natural gas prices. The consensus of warmer weather could also support natural gas prices. However, a weather-related natural gas spike is short term in nature.
The roller coaster ride of natural gas prices impacts energy producers like QEP Resources (QEP), Noble Energy (NBL), and Stone Energy (SN). These stocks have a natural gas production mix more than 50% of their total production. These companies account for 3.62% of the SPDR Oil and Gas ETF (XOP).
They also impact oil and gas ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP. These ETFs mirrored the price direction of natural gas prices and rose in yesterday’s trade.