Will U.S. Natural Gas Production Outpace Demand?
Forbes reported: Although oil has caught up, it was originally natural gas that ignited the U.S. shale revolution that began about a decade ago. Looking forward now, the upside to gas prices seems as small as it has ever been: our Energy Information Administration’s National Energy Modeling System projects that U.S. gas production will increasingly outpace demand. That’s mostly because the amount of gas that we have at our disposal is really without end. We probably have the largest lowest cost gas resource in the world, and our proven reserves alone were up 5% last year to 341 trillion cubic feet – a 60% leap since 2006. More short-term, EIA has gas production outpacing domestic demand over each of the next two years by about 3 Bcf/d. Most of our new demand potential, however, is in the export market, which isn’t factored into that. As the wildcard in our gas market, exports to Mexico and LNG will account for 70-80% of new demand for at least the next five years. According to EIA, LNG exports alone will increase by ~5.5 Bcf/d by the end of 2019 to nearly 9 Bcf/d. So, production will need to rise to the mid-80s Bcf/d level to support this structural increase in consumption. For more on this story visit forbes.com or click http://bit.ly/2Ee6LGu
Europe’s Biggest Gas Field to Close Over Quake Risk
Oilprice.com reported: Europe’s biggest gas field–Groningen has been pumping gas for more than half a century and supplies gas to 98 percent of the Dutch population. But the field has been causing earthquakes that have become a growing concern for residents and authorities. After years of debates and measures to curb production at the field, the Dutch government decided this week that output at Groningen will be terminated by 2030. For more visit oilprice.com or click http://bit.ly/2EdFYKr