Natural gas output from the Permian and Haynesville is expected to grow in April. (Source: Shuttestock)
Natural gas production in key U.S. basins is slated to grow by over 400 Bcf/d in April, led by gains in the Haynesville and Permian.
Total natural gas production in the Lower 48 is expected to rise to 96.62 Bcf/d in April, an increase of 420 Bcf/d month over month from March, the U.S. Energy Information Administration (EIA) said in its latest drilling productivity report this week.
Despite a supply glut and weaker-than-expected demand that’s shaved more than 50% off Henry Hub prices in recent months, gas production is forecasted to grow from each of the key basins this month, the EIA said.
Production gains in April will be led by the Haynesville Shale, where gas output is expected to rise by 113 MMcf/d to an average of 16.8 Bcf/d.
Associated gas production in the Permian Basin will rise by 93 MMcf/d to an average of nearly 22.5 Bcf/d in April.
Gas output from Appalachia, the leading gas-producing region in the Lower 48, will grow by 74 MMcf/d to an average of 34.95 Bcf/d.
RELATED
Targa, EnLink, ONEOK Building Out in a Hurry
Henry Hub natural gas prices have collapsed in recent months after averaging $6.42/MMBtu in 2022. Henry Hub prices are expected to average around $3/MMBtu this year before rising to an average of $3.89/MMBtu in 2024, according to EIA forecasts.
Regardless of near-term price volatility, the EIA expects natural gas production to grow through 2050 in order to meet global demand, the agency said in its latest Annual Energy Outlook published March 16.
U.S. gas output is forecasted to grow to between 115 Bcf/d to 121 Bcf/d by 2050, depending on the full impacts of clean energy tax credits authorized under the Inflation Reduction Act last year.
RELATED
Toby Rice: EQT has Considered Developing Its Own East Coast LNG Project
Oil outlook
While the Haynesville will lead gas production growth, the prolific Permian Basin will lead crude oil production gains from March to April.
Crude output from the Lower 48 will grow by 68,000 bbl/d to more than 9.2 MMbbl/d in April, the EIA said.
Oil production in the Permian is forecasted00 to grow by 26,000 bbl/d to over 5.6 MMbbl/d next month. Meanwhile, crude output from the Bakken in North Dakota and Montana will rise by 18,000 bbl/d to nearly 1.2 MMbbl/d.
RELATED
April US Shale Production Set to Rise to Highest Since December 2019
Recommended Reading
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
With Montney Production Set to Grow, US E&Ps Seize Opportunities
2024-10-02 - Canada’s Montney Shale play has already attracted U.S. companies Ovintiv, Murphy and ConocoPhillips while others, including private equity firms, continue to weigh their options.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks
2024-10-11 - The oil and gas rig count rose by one to 586 in the week to Oct. 11. Baker Hughes said the total count was still down 36 rigs or 6% from this time last year.
Baker Hughes Lands Company’s Largest Compressor Line Order
2024-10-10 - Baker Hughes’ project includes 10 integrated compressor line units that will be installed at the Margham Gas storage facility in Dubai, United Arab Emirates.
Sliding Oil Prices Could Prompt Permian E&Ps to Cut Capex
2024-12-03 - A reduction in the rig count would also slow the growth of natural gas output from the region, benefitting gassy Gulf Coast players, according to Enverus.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.