Natural Gas Market Indicators
This shouldn’t take too long. Natural gas acquisition prices are low. Storage inventories are bursting at the seams for this time of year and “must turn” requirements for some volumes of storage may put additional downward pressure on prices.
Warm weather for the country as a whole has completely trumped any market pressure on pricing that may have developed this winter given reductions in gas-directed drilling.
EIA – Natural gas production and use helps reduce emissions and increase energy security
The U.S. Energy Information Administration has released its yearly long-term outlook of energy markets. EIA, the federal agency in charge of energy statistics and forecasts, uses its Annual Energy Outlook to present its view of energy consumption and production in the United States from now until 2035. They unveiled the 2012 Early Release yesterday, and a few high-level points are worth mentioning:
1. Natural gas production rises over projection period and shale comes to represent half of all dry gas production.
EIA sees shale as a growing and increasingly important resource of natural gas for the county; that there is a lot of gas, and it will be produced. In EIA’s view, shale gas is expected to grow to nearly half of all natural gas production by 2035, spurred by new technology, and a greater push toward more liquids-rich plays due to higher oil prices. In the last few years, natural gas production from shale has propelled from nearly nothing to 5.0 trillion cubic feet in 2010, making it 23 percent of all U.S. gas production that year. Data for 2011 indicates that shale production grew again last year. In the outlook, EIA sees continued growth in shale gas production, increasing to an incredible 13.6 trillion cubic feet in 2035, making it 49 percent of the total U.S. dry gas production.
Natural Gas is the Fuel of the Future
The news this week has been full of stories about the low price of natural gas. Indeed, U.S. natural gas futures fell to $2.402 per million Btu, the lowest price since March 4, 2002. Our nation possesses a 100-year supply of this clean burning energy source and we are the largest producer of natural gas in the world. So what can we do with this abundant natural resource?
Natural gas is our country’s foundation fuel and is well positioned to serve as a reliable, secure and clean energy source for U.S. homes, businesses and industries for decades to come. In an article in the recent issue of Oil & Gas Monitor AGA President and CEO Dave McCurdy outlines some of the ways Americans can utilize natural gas to improve our economy, reduce our impact on the environment and secure our nation’s energy future. Take a look.
The promise of the gas revolution
In the January/February 2012 issue of EnergyBiz Magazine, American Gas Association President and CEO Dave McCurdy outlines why natural gas is America’s domestic, clean foundation fuel for now and for our long-term future.
Energy Biz did a terrific job of laying out for their readers the various options that neighborhoods, businesses and consumers have when choosing how to consume electricity, heat their homes, and cook their food. Dave McCurdy’s article is alongside others by leaders in the energy industry.
