Exports have been the main driver of incremental demand this July as domestic consumption has remained tepid compared with one year prior. Exports to Mexico and LNG feedgas combined has added 1.9 Bcf per day of demand to the market and, aside from a modest increase in industrial natural gas use this July, accounts for nearly the entire increase in natural gas use in the lower-48 compared with last year. No doubt this additional demand is a key reason why natural gas prices remain near $3, which in turn has helped support additional drilling rigs. However, the consequences are not apparent that a new daily natural gas production record is imminent.
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.