Friday, May 22, 2020

Rystad Energy: "US Lower 48 gas production to bottom out in November"

We will have the EIA's natural gas weekly update tomorrow as the feature focus was Poland's sources of natty, not market-moving in its own right but part of the bigger picture. As is the fact that U.S. LNG shipments were the lowest since the week of October 17, 2019.
From Kallanish Energy, May 21:
Natural gas production onshore of the U.S.’s Lower 48 states will hit bottom in November at 82.5 billion cubic feet per day (Bcf/d), according to Rystad Energy.

The Norwegian intelligence firm said earlier this week the drop is caused by the Covid-19 pandemic, Kallanish Energy reports.

Most of the expected fall is to come from natural decline, which won’t be offset as the coronavirus crisis has affected spending and drilling activity.

The shut-in of some producing fields is also halting associated gas production, but not “as quickly as the market hoped for so far,” Rystad’s head of shale research Artem Abramov....MORE