Yes, there IS a lot of US nat gas being produced

Anyone hoping the EIA’s revision to its natural gas production survey methodology would be bullish for prices – or bearish for the future of shale gas – was very likely disappointed:

As Stephen Schork writes:

Analysts expected these revisions to be bullish. While January did see a small 0.6 Bcf/d revision lower, production in February still rose 1.6%. What’s more, assumptions about the glut of shale plays were vindicated – Louisiana saw a 5.7% increase, the largest of any state, which the DOE placed on expansion in the Haynesville shale.

Meanwhile the historical revisions were indeed significant, as promised:

The effect wasn’t contained to the US gas markets, either. Utilyx noted that UK prices were also affected:

Gas prompt and curve contracts traded lower day-on-day, as a collapse in the US Henry Hub prices caused a massive sell-off in the UK NBP. At 15:30 US gas storage data was published and showed a greater than forecast build in stocks, that caused NYMEX Henry Hub to fell with a 6.5 percent decrease in the front month contract.

Related links:

Why keep drilling for natural gas? - FT Energy Source
Weekly crude oil storage data: What’s it good for? - FT Energy Source
A potentially bullish natural gas data mystery - FT Energy Source
Those volatile energy prices – and far less volatile consumption - FT Energy Source

Energy Source is no longer updated but it remains open as an archive.

Insight into the financial, economic and policy aspects of energy and the environment.

Read our farewell note

About the blog

Archive

« Mar May »April 2010
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930