US natural gas consumption
PointLogic reported that US natural gas consumption rose marginally by 0.2% for the week ending June 1, 2016—compared to the previous week. Gas flows to the power sector declined for the same period. However, natural gas consumption is 4.5% more than the same period in 2015. Gas deliveries to the residential and commercial sectors rose for the same period. Natural gas exports to Mexico also rose for the same period.
US natural gas consumption forecast
In its May Short-Term Energy Outlook report, the EIA (U.S. Energy Information Administration) estimates that US natural gas consumption could average 76.5 Bcf per day in 2016 and 77.4 Bcf per day in 2017. The industrial and residential segments will drive demand in 2017. Demand from the electric power sector will drive demand in 2016. New projects in the fertilizer and chemical sectors will also drive the demand.
The rise and fall in natural gas prices impact natural gas producers like Breitburn Energy (BBEP), Cimarex (XEC), Kosmos Energy (KOS), and QEP Resources (QEP). They also influence ETFs like the VelocityShares 3x Long Natural Gas ETN (UGAZ), the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), and the PowerShares DWA Energy Momentum Portfolio (PXI).
Read the next part of this series for the natural gas price forecast.