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Natural Gas January 01, 2020 12:30:50 AM

Report: Natural Gas Production to Slow in 2020

Anil
Mathews
OilMonster Author
Dry gas production in Pennsylvania and West Virginia, which was up 30 percent in 2018, is, according to Enverus projections, forecast to be up 32 percent in 2019.
Report: Natural Gas Production to Slow in 2020

SEATTLE (Oil Monster):  A new report says natural gas production in 2020 will start to pull back on its healthy growth.

Energy analysis firm Enverus on Tuesday said the rapidly accelerating natural gas production nationwide since 2017 will likely fall, given low prices, challenges from producers and only minimal growth in demand. Overall natural gas production is up 32 percent since December 2016 or 23 billion cubic feet per day despite falling prices that are now about $2.64 per thousand cubic feet of natural gas.

With natural gas demand only about 6 percent higher in 2019 despite a boost in production, Enverus Senior Director of Strategy and Production Rob McBridesaid it's a challenging environment for natural gas producers.

"Add to that pipeline constraints and clear signals from operators they're at a breaking point, and the writing on the wall becomes pretty clear — we're expecting a significant slowdown in the growth of U.S. natural gas production next year," said McBride.

Dry gas production in Pennsylvania and West Virginia, which was up 30 percent in 2018, is, according to Enverus projections, forecast to be up 32 percent in 2019. Most of that growth, and production, is occurring in Pennsylvania. At the same time, pricing has fallen even as new pipelines taking natural gas to different markets have come online.

The new year "was meant to bring long-awaited relief with the onset of several pipeline expansion projects," Enverus said in the report. "While this was true for a good part of the year, aggressive gains in production continued to surprise and caused renewed price weakness this past fall."

 

Courtesy:www.bizjournals.com

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