Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on November 7, 2014
Natural Gas production continues to skyrocket
Natural gas production in the lower 48 United States averaged 69.9 billion cubic feet per day (Bcf/d) in October, breaking its previous monthly average high for the 10(th) consecutive month, according to Bentek Energy®, an analytics and forecasting unit of Platts. This was up 7.9% or 5.2 Bcf/d from the daily average production this time a year ago.
To date since October 23(rd), production has sustained a level above the 70 Bcf/d and on October 24 hit a single-day record high of 70.9 Bcf/d. Average October 2014 gas production is 0.7 Bcf/d higher than levels seen in September 2014, a 1.0% increase.
The U.S. Energy Information Administration (EIA) will publish its domestic production estimates for October on or around December 31.
“The current level of production is unchartered territory for the domestic natural gas market and shows no signs of slowing,” said Jack Weixel, director of energy analysis for Bentek. “With six expansion projects in the Northeast coming online this week that will directly increase production takeaway capacity in the region, we should crest the 71 Bcf/d milestone, and possibly the 72 Bcf/d level sometime during the month of November.”
Bentek data analysis suggests 2014 production will average approximately 67.9 Bcf/d due to a higher overall price environment for producers and continued growth in liquids-rich basins such as the Utica, Eagle Ford, Bakken, Permian and Greater Anadarko, in addition to continued increases in dry production in the Marcellus.
The Bentek data analysis is based on an extensive sample of near real-time production receipt data from the U.S. lower 48 interstate pipeline system. Platts’ Bentek production models are highly correlated with and provide an advance glimpse of federal government statistics from the U.S. EIA.
This Bentek Energy U.S. natural gas production data estimate is published monthly, covering the previous month’s output activity. Bentek’s dry gas production estimates are not observed data and are based on pipeline receipt nominations and certain state production data.
7 Comments on "Natural Gas production continues to skyrocket"
Plantagenet on Fri, 7th Nov 2014 10:59 am
Lots of NG is a good thing. We’re going to need NG as oil peaks and global oill production declines.
shallowsand on Fri, 7th Nov 2014 11:11 am
However, a lot of the NG coming online is associated gas, therefore, if rigs do slow in oil areas, look for gas to do so as well.
Nony on Fri, 7th Nov 2014 4:54 pm
Rock is going to be waiting a long, long, loooooooong time for that 8 bucks + gas. 🙂
coffeeguyzz on Fri, 7th Nov 2014 7:00 pm
The DRY gas area of the Utica is in its very early stages of production. Wells such as Rice Energy’s 42 mmcf IP (700 mmcf in 2 months flow), Shell’s 26 mmcf IP well in northeast Pennsylvania, Magnum Resource Hunter’s monster well, 400 miles south, flowing 47 mmcf IP and expected to produce over 5 billion cubic feet in its first year … a staggering sum.
The Utica – far larger than the Mighty Marcellus – will be producing near 4eva.
GregT on Fri, 7th Nov 2014 8:14 pm
“Rock is going to be waiting a long, long, loooooooong time for that 8 bucks + gas.”
Let’s hope so. As electricity prices continue to rise here at 5 times the rate of inflation, more and more people are switching to nat gas for home heating and cooking. In a couple of years when nat gas demand really ramps up, an increase in prices will be devastating for many.
Nony on Fri, 7th Nov 2014 8:52 pm
Marcellus is pipeline constrained, not geology/price constrained. It has 400 TCF of EUR. The Utica has some substantial new sweet spots in the dry gas area also and can share infrastructure, pads, etc.
Norm on Fri, 7th Nov 2014 8:53 pm
They pump out all the natural gas, without saving any of the helium. So a helium shortage is inevitable due to greed and stupidity. Google helium shortage. It cannot be manufactured. It is scarce like gold.