Final data for 2015 is not yet in, but preliminary data from Bentek and other sources suggest the following: last year was a record year for U.S. natural gas production, consumption, volumes in storage, exports to Mexico, and volumes to power generation. Meanwhile, economy-wide U.S. carbon dioxide emissions likely dropped one percent, according to projections from EIA.
So where does that leave us for 2016? Rig counts continue to drop and natural gas production has flattened. Volumes to power generation are higher still, but many of the structural drivers in 2015 will not be present in 2016, such as implementation of the EPA MATS rule that spurred many coal-fired power plant retirements. Questions about 2016 demand remain, but supply indicators appear strong as the next three months of winter unfold.
Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.
Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.
