January U.S. Natural Gas Production Lowest in Nearly Three Years, IHS Markit Says

U.S. monthly natural gas production for January 2017 is lowest monthly production recorded since June 2014


February 6, 2017

HOUSTON (Feb. 6, 2017) – Lower-48 U.S. natural gas production averaged 70.2 billion cubic feet per day (Bcf/d) during January 2017, marking the lowest monthly production level recorded  since June 2014, according to analysis from IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

January production represented the second consecutive monthly decline for U.S. natural gas production, and a 1 percent (0.8 Bcf/d) decrease below  December 2016 average production levels. Compared to January 2016, lower-48 gas production is off 3.4 percent (2.5 Bcf/d).

However, not all areas saw declines in production last month. Gas production is growing in the prolific Northeast region, with production up 0.2 Bcf/d in January versus December 2016 levels, which were 22.5 Bcf/d.  In fact, Northeast production has grown on average the past four months and now stands at an all-time high, besting February 2016 levels of 22.4 Bcf/d, IHS Markit said.

“Production in regions outside the Northeast, most notably Texas, has not been able to keep up the pace,” said Jack Weixel, vice president for analytics at PointLogic Energy, a business unit of IHS Markit that tracks U.S. production levels on a daily basis across 92 producing areas in the lower-48 states. “Legacy production decline has been much steeper in Texas than anticipated and new drilling and a higher rig count during the latter half of last year has not yet caught up.”

Texas production only averaged 16.5 Bcf/d of total lower-48 natural gas production in January, its lowest output since December 2009, Weixel said. Just one year ago, in January 2016, Texas production was above 18.0 Bcf/d, but waning production in East Texas and in the Eagle Ford in South Texas has had a severe impact on total gas supply for the U.S. 

“The only Texas bright spot has been West Texas Permian production, which tends to benefit due to the increased drilling of oil (and associated gas) in the region,” Weixel said.   

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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