EIA: THE US will set new monthly gas production for 2022

In its December Short-term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts that U.S. dry natural gas production will rise 95.1 BCF/d in October 2021 to 97.5 BCF/d in December 2022, a record high. The previous monthly record was 97.2 BCF/d, set in November 2019.

In early 2020, a decline in epidemic-related demand led to a corresponding decline in natural gas prices drilling. As a result, monthly gas production fell to a low of 87.3 BCF/d in May 2020. Since then, U.S. dry gas production has generally been on the rise, with one brief exception in February 2021, when winter weather significantly reduced gas production in Texas.

The forecast for U.S. natural gas production growth includes expected production gas-directed drilling activities natural gas production associated with crude oil production (associated gas). Increased drilling activity increased production individual Wells in the Haynesville area (primarily in Texas Louisiana) Appalachian Basins (primarily in Pennsylvania West Virginia) have led to higher gas production in recent months, according to indicators compiled in the Drilling Productivity Report. Associated gas production also increased as producers completed previously drilled but yet completed Wells (DUC Wells).

The number of gas-directed RIGS drilling primarily in gas-bearing formations declined in 2019 the first half of 2020, according to Baker Hughes. By the end of August 2020, the gas-directed rig count had dropped to 68, the lowest in the Baker Hughes data series going back to 1987. The number of gas-directed RIGS has increased to 102 since mid-November 2021. Rig count is seen as a leading indicator of new drilling, but the relationship between rig count eventual production is complicated by increases in drilling efficiency (the number of new Wells drilled per rig) production new Wells.

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Source: Sinopec News

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