Natural Gas Market Indicators: August 28, 2015The Environmental Protection Agency (EPA) released its new methane reduction rules aimed at limiting emissions from oil and natural gas operations from the wellhead to the distribution city gate. The rule includes elements targeting hydraulically fractured oil wells—something the New Source Performance Standards did not cover in 2012. The new standards would be expected to cost the industry about $370 million to implement annually by 2025, but bring in $460 to $550 million in benefits. It is not expected (at least by EPA) to be a limiting factor for future domestic production.
U.S. production averaged 72 Bcf per day in August. An extended maintenance season this summer has moderated some production growth in all areas of the country. Still, current average daily production year to date has been 4.0 Bcf higher than the same period in 2014.
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.
