Could Trump Impact US Natural Gas Production?



Weekly US natural gas production  

PointLogic reported that US dry natural gas production was flat at 70.4 Bcf (billion cubic feet) per day between January 25, 2017, and February 1, 2017. Dry natural gas production fell 3.4% from the same period in 2016.

The fall in natural gas production is bullish for natural gas (FCG) (DGAZ) (BOIL) (UNG) prices. Higher natural gas prices have a positive impact on natural gas producers’ earnings such as Southwestern Energy (SWN), WPX Energy (WPX), and Range Resources (RRC). For more on natural gas prices, read Part 1 of this series.

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Natural gas imports from Canada were flat at 5.8 Bcf per day between January 25, 2017, and February 1, 2017. Imports from Canada were 5.7 Bcf per day during the same period in 2016. Read Natural Gas Production: Bearish for Natural Gas Prices in 2017? for more on monthly natural gas production and forecasts.

Trump’s impact on natural gas production 

In his energy policyPresident Trump highlighted that he would reduce regulatory restrictions on the exploration and production of natural gas and crude oil. He said that he would open more federal land for exploration and production activity. His actions could increase natural gas supplies in the oversupplied natural gas market.

Natural gas production influences US natural gas inventories. For more on natural gas inventories, read Part 3 and Part 4 of this series. High production can pressure natural gas prices.

Lower natural gas prices can have a negative impact on oil and gas producers’ earnings like Newfield Exploration (NFX) and Memorial Resource Development (MRD).

In the next part of this series, we’ll take a look at the latest updates on natural gas consumption.


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