BAKU, Azerbaijan, May 9. US dry natural gas production is projected to decrease by 2 percent from 1Q2024 to 2Q2024, with June's production averaging 102 billion cubic feet per day (Bcf/d), down 4 percent from the monthly record set in December 2023, Trend reports.
The US Energy Information Administration (EIA) noted a decline in natural gas production in the US due to low natural gas prices. This drop in production is attributed to producers announcing cutbacks in response to the low prices of natural gas.
Additionally, the significant price gap between natural gas and petroleum products is prompting producers to focus on extracting higher-value hydrocarbon gas liquids (HGLs) from the natural gas stream.
The EIA forecasts a 1-percent decrease in dry natural gas production in the US compared to last year, before production rebounds by 2 percent in 2025, reaching a record of nearly 105 Bcf/d.
This anticipated increase in production next year is driven by forecasts of rising natural gas prices, which will incentivize increased drilling in regions focused on dry natural gas production, the agency added. Moreover, the projected increase in crude oil production in 2025 is expected to result in higher associated natural gas production.
The EIA predicts that the price gap between natural gas and petroleum will narrow in 2025, potentially leading to the retention of more HGLs in the natural gas stream next year.