US Natural Gas production by year

US Natural Gas Production Flat in July, but Up Year over Year
January 22, 2016 – 05:00 pm

An Analysis of Falling Natural Gas Prices in 2015: So Far, and What's to Come (Part 4 of 7)

US natural gas production

Based on data from Bentek Energy, an energy market analytics company, the EIA (US Energy Information Administration) reported that total US natural gas production remained flat in the seven days leading up to September 30, 2015, compared to the seven days that ended on September 23. Supply levels remained 3.78% greater than they were in the corresponding week last year.

Total marketed production for July, according to the latest monthly data from the EIA, was at ~79.47 Bcf (billion cubic feet) per day—almost the same as marketed production in June 2015, which was 79.42 Bcf per day. In July 2014, production was at ~75.56 Bcf per day.

Marketed natural gas is the gas produced before associated liquids like propane and butane are extracted. The removal of these liquids leaves dry natural gas.

NG PROD Enlarge Graph

US natural gas production forecasts

The EIA remained bullish about natural gas supplies in 2015. In the STEO (short-term energy outlook) report it released on September 9, it projected that the total US marketed natural gas production would grow by as much as 5.7% over 2014, to 78.95 Bcf per day in 2015, and by 2.2% more, to 80.68 Bcf per day, in 2016. The report pegged total marketed natural gas production at 74.72 Bcf per day in 2014. The EIA will release its next STEO on October 6.

But continued production growth may pressure natural gas prices further down (UNG) if demand doesn’t match this supply. Weak prices would hurt gas-producing companies such as Noble Energy (NBL), Range Resources (RRC), and Antero Resources (AR). These companies make up ~2% of the Vanguard Energy ETF (VDE).

Higher production, however, could benefit MLPs (master limited partnerships) like MarkWest Energy Partners (MWE) because it means more volume to transport. Having said that, if prices fall continuously, producers may respond by cutting production in the longer term. This could be negative for some MLPs.

Source: marketrealist.com
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Popular Q&A
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how are the natural gas made from? | Yahoo Answers

Natural gas is made from the decomposition of carboniferous organic matter. This simply means from the decay of plants. Leaves are most productive as they decay quite rapidly relative to the other parts of the plant like the trunk or branchs. This take millions of leaves to form gas. And this happens underground where there is great heat and pressure. If you want to make your own natural gas, you can put leaves and maybe dung into a container and seal it. You then leave it in a warm place for a few weeks. The gas will form within it. But be catious as the container can rapture and burst…

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