The newest estimation of the natural gas supply/demand balance from the Energy Information Administration (EIA) recorded in the 2014 AEO Outlook Early Release is a mixture of many interesting observations, modeled results and assumptions. In some cases, the view is more optimistic than it was in 2013. Noting many evolving market conditions, for example, EIA envisions strong and earlier than previously expected total LNG and pipeline natural gas exports. This is supported by a domestic production picture that grows more than 50 percent from 2012 to 2040 on the back of unconventional resource development.
Demographic changes are influencing model results as well. For example, EIA sees a reduction in the growth of vehicle miles traveled due primarily to an aging population. Couple this observation with increases in fuel economy for light duty vehicles and the recipe makes for a reduction in energy consumed in the personal vehicle market from about 16 quadrillion Btus in 2012 to 12.1 quads in 2040.
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.
AGA is very grateful for the reader interest in our Natural Gas Market Indicators report, which is now marking the 218th issue published. Although we will continue to circulate the document twice per month via e-mail, a new look is in the works and new tools for you to forward the report to others are being developed. Please be on the lookout for initial changes in the format beginning January 2014. Our content and purpose will remain the same, which is to provide you a snapshot of critical natural gas industry developments from a local gas utility perspective. Thank you again for your interest in our market views and your readership.