U.S. Natural Gas Production and Imports
EIA's most recent monthly production data indicated that total U.S. average daily marketed production reached 70.4 Bcf/d in November 2012, 0.4 Bcf/d above the previous month, with upticks in the federal Gulf of Mexico, Oklahoma, Wyoming, and the category for other states, which includes Pennsylvania. Production in the Marcellus Shale areas of Pennsylvania and West Virginia is expected to continue rising, as recently drilled wells become operational. Despite relatively low natural gas prices, Pennsylvania drilling continues at a strong pace as producers target combination oil-and-gas wells. Projected marketed production increases from 69.2 Bcf/d in 2012 to 70.0 Bcf/d in 2013, and remains flat in 2014....MOREI've been harping on the production side since last spring:
Even as the drillers go for the higher value natural gas liquids there is still a lot of "after processing" gas coming onto the market....June 2012
...We've been talking about how difficult it is for producers to actually cut production for reasons ranging from their need for cash flow from recently completed (and paid for) wells to gas as a "byproduct" of their search for higher value liquids to the ponzi finance of current life-cycle projections to wells awaiting completion and/or hook-up....November 2012
We are seeing a battle between the rapid declines of shale-gas wells older than a year vs. hundreds (it might be 1300) of wells that have been completed but not hooked into the distribution system.See also:
Further complicating analysis is the fact that almost a third of the country's nuclear fleet is down, refueling, Hurricane Sandy, San Onofre etc. putting more of the burden on the peaker gas generators which have been substituting for base capacity....
Credit Suisse on Natural Gas: Five Reasons Why A Near-Term Pause In Pricing Is Likely
Bentek Energy: "Natural Gas Outlook – 2012 and Beyond"
And many, many more.