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natural gas production

Questioned On Natural Gas Production And Consumption Claims

A reader of the Musings wrote me to say he enjoyed reading my newsletter but he took issue with certain statements I made about the natural gas market in the latest issue.  I wrote that "At the root of the gas price problem [low gas prices] is a lack of significant natural gas demand growth coupled with a very modest decline in gas production due to the drop in drilling during the first half of 2009."  The writer suggested that I obviously hadn't looked at the latest data from the EIA's natural gas monthly report.  He wrote that "claims that production declined

Natural Gas Monthly Production On Cusp of Real Decline?

The July release of the Energy Information Administration's monthly gross natural gas production data collected from its Form 914 survey of producers shows a meaningful decline for May's production compared to April's revised production estimate.  May production was initially estimated at 62.24 billion cubic feet per day (Bcf/d), down 0.8% from April's revised production estimate of 63.35 Bcf/d.  Many analysts have latched on to this data as a sign that the industry's gas drilling cutbacks are beginning to show meaningful production reductions that will lead to higher natural gas

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