EIA Foresees Natural Gas Output Boost from Permian Region

SEATTLE (Oil Monster): The Short-Term Energy Outlook report published by the U.S. Energy Information Administration (EIA) foresees high productivity from Permian region. The improved well-level productivity coupled with rising crude oil prices will boost drilling activity, which in turn will result in increased natural gas production.

According to estimates, the U.S. marketed natural gas production in the Lower 48 states is expected to record growth by 5% and 2% in 2023 and 2024 respectively. Majority of the forecast growth is likely to come from the Permian region.

ALSO READ:

US EIA Released Latest Brent Crude Oil Price Forecast

U.S. Crude Stocks Fall, Gasoline Inventories Rise: IEA

The Permian region currently accounts for nearly one-fourth of all marketed natural gas production in the L48. IEA forecasts that natural gas production from the region will witness a surge by 11% in 2023 and 6% in 2024.

The wells that have commenced operations so far this year have recorded average natural gas production of 1,849 million cubic feet (MMcf) during thier first full month of operations. The average first month production for Permian region wells have recorded surge in recent years. The production from the region increased despite decline in rig count. The number of active rigs reduced by 31 from the start of the year to 322 as of September this year.

IEA predicts surge in prices of West Texas Intermediate crude oil in 2024 to average at $83.22 per barrel.