Weekly natural gas supplies
PointLogic reported that US natural gas supplies were flat at 79.7 Bcfpd (billion cubic feet per day) for the week ended July 13, 2016, compared with the previous week. Supply levels were 0.8% lower than during the same week in 2015.
Gas imports from Canada fell to 6.3 Bcfpd for the week ended July 13, 2016, from 6.4 Bcfpd in the previous week. Imports from Canada were at 6.1 Bcfpd during the corresponding period in 2015.
Monthly natural gas production figures
The EIA (U.S. Energy Information Administration) reported that natural gas production averaged 79.1 Bcfpd in June 2016. US natural gas production peaked at 80.1 Bcfpd in February 2016, and it fell due to lower natural gas prices.
EIA’s natural gas production forecast
In its July Short-Term Energy Outlook Report, the EIA estimated that US-marketed natural gas production could average ~79.5 Bcf per day in 2016. It expected to rise further to ~81.4 Bcf per day in 2017.
Production is expected to rise in 2016 and 2017 due to rises in production in the shale regions in the US. Increasing demand from Mexico should also lead to a rise in natural gas production.
Technological advancements and improvements in drilling methods have led to rising productivity. As a result, natural gas production has increased despite lower natural gas prices. Associated production with rising US crude oil production in 2014 and 2015 also led to rises in natural gas production.
For more on US crude oil production, please read Why Did Weekly US Crude Oil Production Rise Last Week? US natural gas production is expected to rise by 1% in 2016 and by 2.4% in 2017. This marginal rise is due to lower natural gas prices and fewer rigs.
Impact of natural gas production
High natural gas production will add to US natural gas inventories, and it will pressure natural gas prices. Multiyear low natural gas prices will affect oil and gas producers such as Rex Energy (REXX), Exco Resources (XCO), and Antero Resources (AR).
Please read the next part of this series for the latest update on natural gas consumption.