Nat Gas News – May 1, 2017
Nat Gas News – May 1, 2017
In the News
Pennsylvania, Ohio increase natural gas production
Midland Reporter-Telegram reports: Natural gas production in Texas fell by 2.5 billion cubic feet per day in 2016, according to a report released Tuesday by the U.S. Energy Information Administration. Pennsylvania and Ohio saw increased natural gas production. Last year, both states produced 1.2 billion cubic feet more natural gas per day. The nation produced 77 billion cubic feet per day in total, down from 79 billion cubic feet per day in 2015. Pennsylvania and Ohio, which draw from the Marcellus and Utica formations, increasingly have become major players in domestic natural gas production, growing from 2 percent in 2006 to 24 percent in 2016. Pennsylvania ranks second in production behind Texas, surpassing Louisiana in 2013. Ohio is the seventh-highest natural gas-producing state, surpassing West Virginia last year. For more visit mrt.com or click http://bit.ly/2plCphh
The U.S. natural gas market, end of April 2017
Forbes reports: After trading mostly sideways for the month, May natural gas expired at $3.14, reaching a settled low of 3.04 on April 25 and a high of $3.33 on April 6. U.S. natural gas stocks ended heating season at the third highest level in 10 years. We had a 74 Bcf storage injection reported today, which was right on target with expectations. We now stand 16% above the 5-year average for gas inventories, insulating prices in the near-term. At 70-71 Bcf/d for months, however, U.S. dry production currently sits almost 3% lower than year-ago levels. Today’s market backwardation shows that the market is undersupplied and we should slow new consumption (in contrast, oil’s contango shows that the market is oversupplied). Yet, rising oil and gas rig counts (up 112% to 857 since bottoming out last May), more pipelines (e.g., a 7 Bcf/d buildout in the Marcellus region before 2018), and higher prices will increase gas output in the second half of 2017 and on into 2018. For more visit forbes.com or click http://bit.ly/2oOdOTs
This article is part of Daily Natural Gas Newsletter
Tagged: natural gas, prices
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