U.S. natural gas production will decline in 2024 while demand will rise to a record high, the U.S. Energy Information Administration (EIA) said in its Short Term Energy Outlook on April 9.
EIA projected dry gas production will ease from a record 103.80 Bcf/d in 2023 to 103.58 Bcf/d in 2024 as several producers reduce drilling activities after gas prices fell to a 3-1/2-year low in February and March.
In 2025, EIA projected output would rise to 104.88 Bcf/d.
The agency also projected domestic gas consumption would rise from a record 89.09 Bcf/d in 2023 to 89.92 Bcf/d in 2024 before easing to 89.12 Bcf/d in 2025.
Recommended Reading
Oil Rises After OPEC+ Extends Output Cuts
2024-03-04 - Rising geopolitical tensions due to the Israel-Hamas conflict and Houthi attacks on Red Sea shipping have supported oil prices in 2024, although concern about economic growth has weighed.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
What's Affecting Oil Prices This Week? (Feb. 26, 2024)
2024-02-26 - Stratas Advisors forecast that global crude production will be essentially unchanged from 2023, which means that demand growth in 2024 will outpace supply growth.
Oil Dips as Demand Outlook Remains Uncertain
2024-02-20 - Oil prices fell on Feb. 20 with an uncertain outlook for global demand knocking value off crude futures contracts.
Kissler: The Challenge for Oil is Falling Demand, Despite Heightened Middle East Conflicts
2024-02-09 - Even though demand is the bigger weight on traders’ minds right now, Red Sea attacks and the U.S.’ “shadow war” with Iran still have the potential to impact the global oil supply, and consequently, prices.