BAKU, Azerbaijan, Feb.28. US natural gas production is expected to see more limited growth in 2023, after several years of low investment driven by strict financial guidance from oil and gas companies, Trend reports with reference to the International Energy Agency (IEA).
The latest IEA report reveals that higher returns in 2022 do not seem to herald any major change in spending targets while companies keep a strong focus on short-term shareholder returns.
"EQT Corporation, a major US natural gas producer, reported in late 2022 a doubling of its share repurchasing programme to USD 2 billion and a near doubling of its debt reduction target from USD 2.5 billion to USD 4 billion for 2023. Other leading gas producers Antero Resources, Southwestern Energy and Chesapeake Energy have collectively repurchased close to USD 3 billion of their shares in 2022.
Limited prospects for an increase in spending, together with cost inflation, workforce shortages and a risk of further productivity declines as drilling is less concentrated in core areas, are likely to slow the rate of gas production growth in 2023 compared with previous years. Our forecast expects US natural gas output to increase by about 2% this year, principally supported by associated gas production, while pure gas shale plays are expected to see only limited growth," reads the report.