U.S. Natural Gas Production Rallies Again in August, Up Nearly 1.4 Percent Compared to July, IHS Markit Says

August production level marks consecutive month-on-month gains for first time this year


September 12, 2016

HOUSTON (Sept. 12, 2016) – U.S. natural gas production levels in the lower 48 states increased by about 1.4 percent in August 2016 compared to July 2016 levels, according to analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. This marks the second month in a row where natural gas production outpaced its prior month’s level, the first such occurrence dating back to September 2015.

Overall, lower 48 U.S. dry-gas production averaged 73 Bcf/d (billion cubic feet of gas/day), IHS Markit said, which represents a 1 Bcf/d (or a 1.4 percent) increase from production levels seen in July 2016. 

IHS Markit business unit PointLogic Energy tracks U.S. production levels on a daily basis across 92 producing areas in the lower 48 states. While August 2016 production levels increased compared to July 2016 levels, overall production is down about 0.7 Bcf/d (or 1 percent) compared to August 2015.     

“Northeast production led the pack again this month, increasing by 0.4 Bcf/d in August compared to July,” said Jack Weixel, vice president for analytics at PointLogic Energy, part of IHS Markit. “Gains in the region were largely centered in the Utica shale basin, which has pushed total Northeast production to its highest level since February of this year.”     

August data also shows that production in West Texas and the Gulf of Mexico increased compared to July, reflecting greater amounts of associated gas from oil production in the area. South Texas production continues to struggle as drilling activity rotates out of the Eagle Ford formation and into the Permian Basin, driven by producers searching for better margins during this period of lower oil prices.    

“The year-over-year decline in natural gas production is largely due to lower associated-gas production, which fell as oil production declined, but there were also pipeline constraints relative to Appalachia production,” said Sam Andrus, senior director of North American natural gas research for IHS Markit. “Also, a warmer-than-normal winter left record storage inventories and reduced summer gas-injection demand by almost 4 Bcf/d. However, the warmer-than-normal summer has replaced that demand loss with record gas demand for power generation. The increased demand for power generation has elevated Henry Hub cash prices in the south and is driving production increases in the pipeline-constrained Appalachia Basin.”        

PointLogic Energy derives real-time natural gas production data from publicly available interstate pipeline flow data in the lower 48 United States. The energy division at IHS Markit provides market insight and analytics for North American power, gas, coal and renewables.    

To speak with Jack Weixel or Sam Andrus, or for more information on PointLogic Energy or IHS Markit natural gas data and analytics, please contact Melissa Manning at melissa.manning@ihsmarkit.com.


About IHS Markit (www.ihsmarkit.com)

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions.  Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

PointLogic Energy delivers trusted energy market fundamental data and analysis to participants in the oil and natural gas sectors. For more information on its dynamic online tools, in-depth market coverage, and trend analysis please visit www.pointlogicenergy.com.


Contact:
All Industries
IHS Media Relations, +1 303 305 8021
press@ihs.com
or
Chemicals; Energy; Natural Resources
Melissa Manning, +1 832 458 3840
melissa.manning@ihsmarkit.com

 

 

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