EIA Releases New Gas Estimates
The Energy Information Administration (EIA) raised its estimate for domestic natural gas production in its August Short-Term Energy Outlook and made several other interesting natural gas projections:
- Production is expected to rise by 5.3 percent to 73.9 billion cubic feet per day (Bcf/d) in 2014, compared to 70.2 Bcf/d in 2013.
- Total consumption will average 72.6 Bcf/d in 2014, an increase of 1.7% from 2013, led by the industrial sector.
- In 2015, consumption increases by 0.4 Bcf/d as continued industrial sector growth offsets lower residential and commercial consumption.
- Henry Hub spot prices are projected to average $4.46 per million British thermal units (MMBtu) in 2014 and $4.00/MMBtu in 2015, versus $3.84/MMBtu in 2013.
- Higher prices contribute to a 2.2% decline in gas consumption in the power sector to 21.8 Bcf/d in 2014. Consumption in the power sector should increase to 22.7 Bcf/d in 2015 with lower prices and the retirement of some coal plants.