Tuesday, November 29, 2011

U.S. Nat Gas Production Hits New Record in Sept.

Updated: The EIA released data today on U.S. natural gas production for the month of September.  On a seasonally-adjusted basis, natural gas production (both gross withdrawals and marketed production) in the U.S. reached new record-high levels in September of almost 2.5 trillion cubic feet for gross withdrawals and 2.1 trillion cubic feet for marketed production, about 6% above the year-ago levels.  Compared to September 2006, natural gas production has increased by 22% over the last five years for gross withdrawals and 24% for marketed production. 

Here's the opening paragraph from a related story on natural gas in The Economist from a few days ago, about why Europe may "have trouble replicating America’s shale-gas bonanza," at least in the short-run:

"Shale gas has turned the American energy market on its head. Production has soared twelve-fold since 2000, to 4.9 trillion cubic feet, or a quarter of the country’s total gas output. By 2035 the proportion could rise to half. As the shale gas flows, prices have come crashing down. Not long ago, America depended on imports of liquefied natural gas. Now it is likely to become a gas exporter. These benefits have not gone unnoticed in Europe."

Here's the ending paragraph:

"America’s shale revolution began 20 years ago, but its impact has been felt only in the past five years. Europe’s may take just as long. But when the fracking begins in earnest, it could turn Europe’s energy market on its head, too."

5 Comments:

At 11/29/2011 4:39 PM, Blogger Benjamin said...

Better and better---the private sector just gets better and better and produces more for less every year.

Commodities will be relatively cheaper 20 years from now, and even cheaper 40 years from now.

The reverse applies to federal agencies, such as the Pentagon.

 
At 11/29/2011 8:08 PM, Blogger Benjamin said...

According to Oilprice, now the Chinese are looking at tracking...Mercy, there is going to be a lot of natural gas around for a long time....

 
At 11/29/2011 8:28 PM, Blogger westexas said...

Your EIA link shows gross withdrawals, not production.

Here is a link to production:

http://www.eia.gov/dnav/ng/hist/n9070us2A.htm

 
At 11/29/2011 8:29 PM, Blogger westexas said...

Here is a link showing the ratios of US oil, natural gas and coal consumption to production (BP data base):

http://i1095.photobucket.com/albums/i475/westexas/Slide4-2.jpg

 
At 11/29/2011 9:41 PM, Blogger VangelV said...

Given the fact that the shale gas producers are losing money at the current price levels what makes anyone think that the current production is sustainable? After all, the biggest promoter of shale gas, Aubrey McClendon announced that his company is already transitioning from shale gas to shale liquids. At the conference calls I hear CEO after CEO hype liquids over gas and talk about funding gaps and asset sales. That does not sound very sustainable to me but I keep getting stories about exporting natural gas.

 

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