Monthly US natural gas production 

According to the EIA (U.S. Energy Information Administration), monthly US dry natural gas production fell by 1.36 Bcf (billion cubic feet) per day or 1.8% to 72.9 Bcf per day in June 2017—compared to May 2017. Production fell from a ten-month high hit in May 2017.

However, US dry natural gas production rose by 1.33 Bcf per day or 1.8% from the same period in 2016. The year-over-year rise in natural gas production is bearish for natural gas (BOIL) (FCG) (UNG) prices. 

Lower natural gas prices are negative for natural gas producers’ earnings like Rice Energy (RICE), EQT (EQT), Exco Resources (XCO), and Antero Resources (AR).

Why US Natural Gas Production Fell from a 10-Month High

Weekly US natural gas production  

PointLogic estimates that weekly US dry natural gas production fell 1.5% to 71.7 Bcf (billion cubic feet) per day on August 24–30, 2017. However, US dry natural gas production has risen 0.4% from the same period in 2016.

EIA’s natural gas production estimates  

The EIA estimates that US dry natural gas production would average 73.5 Bcf per day in 2017 and 77.3 Bcf per day in 2018.

US production averaged 74.1 Bcf per day in 2015 and 72.3 Bcf per day in 2016. Production fell for the first time in 11 years in 2016.

Impact 

High US natural gas production in 2017 and 2018 would pressure natural gas (FCG) (GASL) prices. Lower natural gas prices have a negative impact on natural gas producers’ earnings like Exco Resources and Antero Resources.

In the next part, we’ll discuss US natural gas consumption.

Latest articles

The Dow Jones Industrial Average fell 53.44 points (or 0.2%) today, possibly because the market gave a thumbs up to yesterday's 0.25% rate cut by the Fed.

If there’s one thing critics and fans agree on when it comes to Bitcoin, it’s the volatility factor. The moves are big, and timid investors need not apply.

In this year’s annual shareholder letter, Berkshire Hathaway (BRK.B) CEO Warren Buffett discussed the possibility of an “elephant-sized acquisition."

The esports industry is thriving. Let's take a look at the expected growth in esports viewership and the total available market in the space.

Today, Jeff Bezos detailed Amazon's plans for sweeping sustainability initiatives. Bezos's announcement came a day before the Global Climate Strike.

Integrated oil companies ExxonMobil and Chevron have strong upstream portfolios, which play a vital role in determining their profitabilities.