EIA Predicts Surge in US Natural Gas Production and Demand

SEATTLE (Oil Monster): The Short Term Energy Outlook (STEO) published by the US Energy Information Administration (EIA) says that U.S. natural gas production and demand is poised to hit record levels in 2023.

The dry gas production is projected to rise to hit 103.68 billion cubic feet per day (bcf/d) during the current year. It will increase further to hit 105.12bcf/d in 2024. The projected production is significantly higher when compared with the record production of 99.60bcf/d in 2022

The domestic gas consumption is likely to rise from the record high of 88.38bcf/d set in 2022 to 89.42bcf/d in 2023. However, it is expected to fall to 89bcf/d next year.

The EIA estimates that the exports of liquefied natural gas (LNG) by the U.S. will see an increase from 10.59bcf/d in 2022 to 11.80bcf/d in 2023. The winter natural gas prices are predicted to average around $3.40 per million British thermal units (MMBtu). The 2023 winter average prices will be lower when compared with last winter when prices had averaged at $5.00/MMBtu.

If the predictions come true, the output would record four consecutive years of increase for the first time since 2015. Also, the demand would record three consecutive years of rise for the first time since 2016.