Natural Gas Production Hits All-Time High Before Winter

Canadian gas net imports have been weak on the back of Enbridge's BC line rupture.

SEATTLE (Oil Monster): Lower 48 production hit another all-time high this weekend of ~87 Bcf/d.

This is quite staggering considering that Lower 48 production is now ~12 Bcf/d higher y-o-y. On a total gas supply basis, the record high pushed gas supplies above ~91 Bcf/d.

Canadian gas net imports have been weak on the back of Enbridge's BC line rupture. The reduced import volumes are likely to rebound, which could push total gas supplies above ~92 Bcf/d.

As a result of the surge in natural gas production, the natural gas market is in a weird position at the moment. With natural gas storage expected to enter the winter heating season near record lows and below ~3.2 Tcf, bears and bulls both make compelling arguments as to why either side should win in the debate.

Courtesy: www.seekingalpha.com