BAKU, Azerbaijan, June 11. The US Energy Information Administration (EIA) expects dry natural gas output in the US to reach record high in April, Trend reports.
Thus, dry natural gas production in the country is set to total 104 bcf/d, which is an increase month-on-month (102 bcf/d in March).
“The production record occurred despite natural gas prices that averaged below $2.50 per million MMBtu at the U.S. benchmark Henry Hub in March and April, about $4.00/MMBtu less than the 2022 annual average. Production growth has been concentrated in two regions: the Haynesville region in northeastern Texas and northwestern Louisiana, and the Permian Basin in western Texas and southeastern New Mexico. Growth in the Haynesville region reflects the lagged effects of high natural gas prices in 2022 that increased drilling activity in the region. Growth in natural gas production in the Permian, because of which is mostly associated natural gas, has been driven by relatively high oil prices and increased oil production,” the agency reported.
At the same time, EIA expects US dry natural gas output to stay close to record levels throughout the projected period - around 103 bcf/d during the second half of 2023 and 2024.
“The flat production reflects reduced natural gas-directed drilling in response to the drop in natural gas prices this year being offset by increasing associated natural gas production in the Permian Basin. Higher expected crude oil prices in this month's STEO compared with last month result in our upward revision of natural gas production in this month's outlook, despite lower natural gas prices in the forecast,” EIA added.