EIA: US natgas production will decline in 2024 as demand reaches record levels, EIA reports
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, released on Tuesday, predicted that U.S. Natural Gas production would decline by 2024 and demand would rise to a new record.
EIA predicted that dry gas production would decline from a record 103,8 billion cubic feet per a day in 2023 down to 103.2 bcfd by 2024 due to fewer drilling activities.
The producers have reduced drilling following the average monthly Henry Hub spot gas price.
EIA predicted that by 2025, the output would increase to 103.7 bcfd.
The agency also predicted that domestic gas consumption will rise from an all-time high of 89.1 Bcfd by 2023, to 90.5 Bcfd by 2024, before falling to 90.2 Bcfd by 2025.
If the projections prove correct, the COVID-19 pandemic in 2020 reduced demand for fuel, causing the output to decline. This would be the first four-year demand increase since 2016.
The EIA forecast for supply in 2024 was 103.3 billion cubic feet per day (bcfd) but the latest projections were higher than 90.0 fbcfd, which is what they predicted.
The agency predicted that the average U.S. LNG exports in 2024 would be 12.0 bcfd and 13.7bcfd, up from 11.9bcfd at a record in 2023.
As gas and renewable energy sources replace coal-fired power plants, the agency predicted that U.S. production of coal would drop from 578.0 millions short tons in 2013 to 508,8 million in 2024. This would be at its lowest level since 1964. By 2025, it would have fallen to 472.3 million, the lowest amount since 1962.
EIA predicted that CO2 emissions from fossil fuels will decrease from 4.795 million metric tonnes in 2023 to 4.770 million metrictons in 2024, as coal usage declines. Then they are expected to increase to 4.796 millions metric ton in 2025 due to an increase in coal and petroleum consumption. (Reporting and editing by Richard Chang, Mark Porter, and Scott DiSavino)
(source: Reuters)
