U.S. Natural Gas Production Experiences Modest Recovery in November, IHS Markit Says

November natural gas production rebounds from October lows as regional markets rebalance


December 8, 2016

HOUSTON (Dec. 8, 2016) – Lower 48 U.S. natural gas production rose slightly in November, averaging nearly 72.1 billion cubic feet per day (Bcf/d) in November, which reflects an increase of 1.6 percent (1.1 Bcf/d) above the average in October, according to analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

The production increase, although modest, comes after the U.S. natural gas sector experienced production lows in October not previously seen since July 2014. Overall, to date, 2016 natural gas production in the U.S. is approximately 1.1 Bcf/d lower than during than the same period in 2015, IHS Markit said.

“While natural gas prices appear to be on the mend, expectations for a late-2016 U.S. production rally are dim,” said Jack Weixel, vice president for analytics at PointLogic Energy, part of IHS Markit.

IHS Markit business unit PointLogic Energy tracks U.S. production levels on a daily basis across 92 producing areas in the lower-48 states. Despite the recovery in November 2016, production levels are still considerably lower than where they stood in November 2015 (down by 1.4 Bcf/d, or 1.9 percent), due to sustained low prices for the commodity, which have persisted since the end of last winter.       

“In Texas, gas production was able to come back from the brink in November and average approximately 17.2 Bcf/d after October levels fell below 17.0 Bcf/d for the first time since February 2011,” Weixel said. “Northeast production also staged a major rally, up nearly 1 Bcf/d (4.6 percent) month-on-month with gains seen mostly in the dry portions of the Marcellus in Pennsylvania.”

Weixel said that recovery in the Utica has been slower to bounce back, but that may be alleviated by a pipeline expansion that will come in service later this month.         

“In addition to colder weather increasing local demand this month, the market is also anticipating the full service opening of Tallgrass’s Rockies Express Zone 3 Capacity Enhancement pipeline project,” Weixel said. “The expansion of a major pipeline artery leaving the Northeast alleviates some of the demand constraint that caused regional prices to crater in October, trapping production in the region. Tallgrass hopes to have the 0.8 Bcf/d expansion ready to move gas west, out of Ohio, by mid-December.”         

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 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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