U.S. Natgas Output to Rise, Demand to Fall in 2021-EIA

The EIA projected carbon emissions from burning fossil fuels will rise to 4.864 billion tonnes in 2021 and 4.955 billion tonnes in 2022.

SEATTLE (Oil Monster):  U.S. natural gas production will rise in 2021 after falling last year as demand slid during the coronavirus pandemic, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook (STEO) on Tuesday.

EIA projected dry gas production will rise to 92.18 billion cubic feet per day (bcfd) in 2021 and 93.93 bcfd in 2022 from 91.35 bcfd in 2020. That compared with an all-time high of 93.06 bcfd in 2019.

The agency also projected gas consumption would fall to 82.85 bcfd in 2021 and 2022 from 83.25 bcfd in 2020. That compares with a record high of 85.15 bcfd in 2019.

If the outlook is correct, 2021 would mark the first time consumption drops for two years in a row since 2006.

EIA's projections for 2021 in June were higher than its May forecasts of 91.06 bcfd for supply and 82.64 bcfd for demand.

The agency forecast U.S. liquefied natural gas (LNG) exports would reach 9.38 bcfd in 2021, which would top 2020's all-time high of 6.53 bcfd, before sliding to 9.22 bcfd in 2022.

If correct, 2022 would be the first decline in U.S. LNG exports since 2013 when the only export terminal was in Alaska and the country was still importing more LNG than it sent out.

EIA projected U.S. coal production will rise to 600 million short tons in 2021 and 605 million short tons in 2022 from 539 million short tons in 2020, its lowest since 1965, as rising gas prices prompt power plants to burn more coal.

The EIA projected carbon emissions from burning fossil fuels will rise to 4.864 billion tonnes in 2021 and 4.955 billion tonnes in 2022 as power generators burn more coal. That is up from 4.571 billion tonnes in 2020, which was the lowest since 1983.

Courtesy: www.nasdaq.com