Natural Gas News – May 23, 2023

Natural Gas News – May 23, 2023

U.S. Permian NatGas Flaring Could Rise in 2024, Report Shows

May 23 (Reuters) – Natural gas flaring in the top U.S. shale basin is poised to increase next year, a report released on Tuesday projected, as the region’s output exceeds available pipeline capacity. Increased flaring, or the burning of unwanted gas, could reduce shale oil production in the region as major oil producing companies seek to limit climate-warming carbon dioxide emissions. The Permian is the biggest U.S. shale oil basin, pumping 5.7 million barrels of oil per day and 22.5 billion cubic feet per day (bcfd) of natural gas, productivity estimates by the U.S. Energy Information Administration (EIA) show. Companies need to move that gas to market (or burn or reinject it) to sustain oil production. “In an ideal world, (gas pipeline) infrastructure would stay ahead of supply growth, but for both commercial an…

Natural-Gas Futures Drop More Than 7%; Oil Prices End Higher

Natural-gas futures fell by more than 7% on Monday, ending lower after a hefty gain last week on signs of an upcoming decline in U.S. production, while oil prices settled a bit higher as investors tracked U.S. debt-ceiling talks. Natural-gas futures ended sharply lower Monday, with prices losing more than half of the percentage gain they logged last week. The Energy Information Administration on Thursday reported a smaller-than-expected build in U.S. natural-gas supplies in storage. That “exacerbated a short-covering-driven rally” in Henry Hub, the distribution hub for natural gas, that started the week prior, analysts at Goldman Sachs wrote in a research note dated Sunday. For the week ended May 12, oil-field services company …