U.S. Natural Gas Production Shows Spark in July, Rises Nearly 1 Percent above June Production, Ending Five-Month Decline, IHS Markit Says

July production levels signal continued producer resilience against low prices


August 15, 2016

HOUSTON (August 15, 2016) – U.S. natural gas production levels in the lower 48 states increased nearly 1 percent in July 2016, and averaged 73.3 billion cubic feet per day (Bcf/d), ending a five-month production decline, according to analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions. 

The production increase, IHS Markit said, represents a 0.6 Bcf/d (0.8 percent) increase from production levels seen in June 2016, and brings a spark of unanticipated good news for producers of the commodity that has seen historically low price marks during the summer. 

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 July 2016 production levels were up versus the prior month, average production levels were down slightly versus July 2015 levels, reflecting the uneasy production environment in the industry following a multi-year surge in production levels. 

“Areas with healthy production economics are hanging on, but declines are setting in across producing areas where the return on investment from natural gas or oil wells (associated gas) continues to be unattractive,” said Jack Weixel, vice president for analytics at PointLogic Energy, which is part of IHS Markit, and one of the authors of the monthly gas production analysis. “Production declines have been slower to come than many analysts have expected, given the price conditions producers’ have had to endure for much of the year.”  

July data showed that production in Texas, the Midcontinent and the Western U.S., experienced the greatest decline versus June levels, with Texas down about 0.5 Bcf/d. These declines, IHS Markit said, were overcome by slight increases in the Gulf of Mexico and the Northeast, led by the Marcellus and Utica in West Virginia.    

PointLogic Energy flow-data is derived from real-time production and demand data from interstate pipelines in the lower 48 United States.  These data sets are used by market participants to supplement official government natural gas supply and demand data published by the Energy Information Administration (EIA).   

To speak with Jack Weixel, or for more information on PointLogic Energy natural gas supply and demand data, 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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