BAKU, Azerbaijan, August 11. U.S. dry natural gas production averaged 103 billion cubic feet per day (Bcf/d) in July, reflecting a 1-percent rise from June's figures, said the U.S. Energy Information Administration (EIA) in its latest forecast, Trend reports.
According to the EIA, this trend is expected to continue into August, with production levels predicted to remain consistent with July but slightly below the levels seen in August 2023.
The increase in production comes against the backdrop of record-low Henry Hub natural gas spot prices in the first half of 2024, which led many producers to curtail output earlier in the year. Among them, EQT, the largest natural gas producer in the U.S., announced plans to continue limiting its production by approximately 0.5 Bcf/d through the second half of 2024.
Looking ahead, the EIA forecasts that U.S. natural gas production will average 103 Bcf/d for the entirety of 2024, a slight decrease from 2023 levels. However, a rebound is anticipated in 2025, with production expected to climb to an average of 105 Bcf/d. This growth will be driven primarily by an expected rise in the Henry Hub price and increasing demand for natural gas as feedstock for LNG projects slated to come online in the latter half of 2024 and into 2025.
The Henry Hub spot price, which averaged $2.07 per million British thermal units (MMBtu) in July, is projected to rise to about $2.60/MMBtu for the remainder of 2024, slightly below the $2.69/MMBtu average during the same period in 2023.
For the full year, the EIA expects prices to average $2.30/MMBtu. However, should natural gas production exceed expectations and consumption in the electric power sector fall short, prices could dip lower than forecasted.