U.S. dry natural gas production will average 81.2 billion cubic feet per day (Bcf/d) in 2018 – a new record – the Energy Information Administration projects in its just-released Short-Term Energy Outlook (STEO).
STEO/EIA expects natural gas production will rise and set a record again in 2019, to 83.8 Bcf/d, Kallanish Energy reports. By comparison, U.S. dry natural gas production averaged 73.6 Bcf/d in 2017.
“Growing forecast U.S. natural gas production supports increasing forecast liquefied natural gas (LNG) exports,” according to EIA. “LNG exports averaged 1.9 Bcf/d in 2017; EIA forecasts LNG exports to average 3.0 Bcf/d in 2018, and 5.1 Bcf/d in 2019.”
EIA expects Henry Hub natural gas spot prices to average $2.99 per million British thermal units (MMBtu) in 2018, and $3.08/MMBtu in 2019.
NYMEX futures and options contract values for September 2018 delivery that traded during the five-day period ending June 7, suggest a range of $2.38/MMBtu to $3.57/MMBtu encompasses the market expectation for September Henry Hub natural gas prices at a 95% confidence level.