US cuts natgas 2017 output growth forecast, raises 2018 outlook
NEW YORK (Reuters) — US natural gas production growth is expected to surge in 2018, after rising more modestly in 2017, the US Energy Information Administration (EIA) said in a monthly report Tuesday.
US dry natural gas production was forecast to rise to 73.45 Bcfd in 2017 from 72.85 Bcfd in 2016, according to the EIA's Short-Term Energy Outlook (STEO).
The latest November output projection was a little lower than EIA's 73.63-Bcfd forecast in October and falls short of the record high 74.14 Bcfd produced on average in 2015.
The EIA also projected natural gas production would rise to 78.90 Bcfd in 2018, up from a forecast of 78.49 Bcfd issued in October.
Total gas consumption in the US is likely to fall slightly in 2017 to 73.06 Bcfd from 75.1 Bcfd a year earlier. Total consumption is expected to rebound in 2018 to 76.83 Bcfd.
However, natural gas usage in US homes is expected to grow in both years, rising slightly to 11.90 Bcfd in 2017 and climbing to 12.89 Bcfd the following year.
“We foresee a likely rebound in average household residential consumption of natural gas this winter, as we expect temperatures to be closer to average and therefore colder than last year,” said John Conti, acting EIA administrator.
Reporting by Jessica Resnick-Ault; Editing by Chizu Nomiyama and Marguerita Choy
The ongoing development of shale gas resources in the US has spurred infrastructure construction for both natural gas processing capacity and LNG export terminals.
Russian natural gas monopoly Gazprom is strengthening its presence in the gas market of the Middle East through the planned construction of an 11-metric-MMtpy–12-metric-MMtpy LNG plant in Iran.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST