Monthly natural gas production figures
The EIA (U.S. Energy Information Administration) estimated that US-marketed natural gas production rose 0.34 Bcf (billion cubic feet) per day to 79.14 Bcf per day in August 2016—compared to July 2016. Production peaked at 80.1 Bcf per day in February 2016. Since then, it has fallen due to weak natural gas prices. For more on prices, read Part 1 of this series.
EIA’s natural gas production estimates
The EIA released its monthly STEO (Short-Term Energy Outlook) report on September 7, 2016. It reported that US-marketed natural gas production could average 79.2 Bcf per day in 2016 and 81.6 Bcf per day in 2017. US-marketed natural gas production averaged 78.8 Bcf per day in 2015.
In its August STEO report, the EIA estimated that US-marketed natural gas production could average 79.3 Bcf per day in 2016 and 81.6 Bcf per day in 2017.
The EIA downgraded production figures by 0.10 Bcf per day in 2016 in its September STEO edition—compared to its August STEO report.
Production is expected to rise slightly in 4Q16 and 2017 due to increased production in the US shale regions. Increasing demand from Mexico due to a rise in electric power demand will contribute to the rise in natural gas production in late 2016 and 2017.
High natural gas production could pressure natural gas prices. Lower natural gas prices have a negative impact on oil and gas producers’ profitability like Cimarex Energy (XEC), WPX Energy (WPX), and Memorial Resources (MRD).
Volatility in oil and gas prices can impact funds such as the United States Natural Gas ETF (UNG), the Direxion Daily Natural Gas Related Bull 3X Shares ETF (GASL), and the PowerShares DWA Energy Momentum ETF (PXI).
Read the next part of this series for the latest updates on natural gas consumption.