Freeport LNG liquefaction train at Texas export plant shuts
Freeport LNG reported to state regulators on Thursday that one of the three liquefaction train at its export plant in Texas was shut down on Wednesday. Freeport stated that Train 3 was tripped during operation due to a problem with a lube-oil pump. This caused an emissions event which lasted for more than 11 hour from Wednesday evening until early Thursday morning. The state report did not include any details about the company's plans to restart. U.S. Natural Gas Futures fell after the news.
US natural gas drillers will increase output in 2025, reversing a year-long cut
The U.S. Natural Gas producers will increase output in 2025 after a series production cuts this past year. Rising demand from LNG export plants should raise prices, which had dropped to multi-decade lows. According to the latest U.S. Energy Information Administration outlook, U.S. natural gas production will decline in 2024, for the first drop since 2020 when the COVID epidemic reduced demand. After the average monthly spot price at the U.S. Henry hub benchmark, drillers started cutting back on gas production.
EIA increases US and global oil production estimates by a small amount
The U.S. Energy Information Administration announced on Wednesday that both U.S. oil production and global oil output are expected to reach record highs in this year, slightly higher than previous forecasts. Oil prices have fallen to their lowest level since 2021 despite the Organization of the Petroleum Exporting Countries (OPEC+) and its allies cutting production. The EIA reported that the U.S. oil production is expected to reach an average of 13.23 million barrels a day (bpd), which is about 300,000 more than last year's 12.93 million bpd record.
EIA says that US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration stated in its Wednesday Short Term Energy Outlook that the U.S. will reach record levels of power consumption in 2024-2025. EIA projects that the demand for electricity will increase to 4,090 kilowatt hours in 2024, and 4,158 kWh in 2020. This compares to 4,012 billion kWh by 2023, and a record of 4,067 in 2022. EIA predicted that by 2024, residential customers would purchase 1,492 billions of kWh, commercial customers 1,426 billions kWh, and industrial customers 1,027 billions kWh.
Henry Hub natgas price drops to a 25-year low, while Waha is in negative territory
According to LSEG's pricing data, U.S. natural gas spot prices fell to a new 25-year low in Louisiana at the Henry Hub benchmark and entered negative territory at the Waha hub for the 47th consecutive time. The energy traders noted that the mild weather this year has had a negative impact on Henry Hub prices next day, resulting in lower heating and cooling demands than usual. LSEG reports that Henry Hub futures have been under pressure due to the low prices of next-day Henry Hub contracts.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for the first time since four weeks. The number of oil and gas rigs, a good indicator of future production, increased by one in the week ending October 11. Baker Hughes reported that the total number of rigs was down by 36 or 6% compared to this time last. Baker Hughes reported that oil rigs increased by two this week to 481. Gas rigs dropped by one, to 101. Pennsylvania saw two drillers reduce their rigs to 13 - the lowest number since July 2016.
EIA: US natgas production will decline in 2024 as demand reaches record levels, EIA reports
The U.S. Energy Information Administration's (EIA's) 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 projects that dry gas production in the US will fall from a record high of 103.8 billion cubic foot per day (bcfd), in 2023, to 103.5 bcfd by 2024. In March, the number of people who were unemployed fell to its lowest level in 32 years. EIA's projected production for 2025 is 104.6 bcfd.
EIA: US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration's (EIA's) Short Term Energy Outlook, released on Tuesday, predicted that the U.S. electricity consumption would reach record levels in 2024-2025. EIA projects that the demand for electricity will increase to 4,093 kilowatt hours (kWh) by 2024, and 4,163 kWh by 2025. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022. EIA predicted that by 2024, the number of power sales for residential customers would increase to 1…
Maryland Cove Point LNG Export Plant of Berkshire Hathaway shut down for maintenance
According to a notice sent to customers, U.S. energy company Berkshire Hathaway Energy closed its Cove Point LNG export plant in Maryland during the annual autumn maintenance period of about three weeks. According to data from the financial firm LSEG, the amount of natural gases flowing into the plant has dropped to almost zero since August 1, when it averaged around 0.7 billion cubic feet per day (bcfd). Since mid-October 2023, when it was returned to service from its previous autumn maintenance outage, the plant has averaged around 0.8 billion cubic feet per day (bcfd) of LNG.
Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 5 weeks.
Baker Hughes, a leading energy services company, said that the U.S. added the most oil and gas rigs in a week in the past year. In the week ending Sept. 13, the oil and gas rig counts, a good indicator of future production, increased by eight to 590. This is a return to levels seen in mid-June. This was the largest increase since the week of Sept. 15, 2023. Baker Hughes reported that despite this week's increase in rigs the total number was still 51 rigs or 8% below last year at this time. Baker Hughes reported that oil rigs increased by five this week to 488.
EIA: US power consumption expected to hit record levels in 2024 and 25
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, published on Tuesday, said that the U.S. electricity consumption will reach new records by 2024 and 2025. The EIA projects that power consumption will increase to 4,101 billion Kilowatt Hours (kWh) by 2024, and 4,185 billion in 2025, due to the growing demand for power from data centers, manufacturing, and electrification in transportation and buildings. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022.
EIA: US natgas production to decline by 2024, while demand will rise to record levels
The U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook for 2024 predicts that natural gas production in the United States will decrease in 2024, while demand will reach a new record. EIA projects that dry gas production in the US will fall from a record high of 103.8 billion cubic foot per day (bcfd), in 2023, to 103.4 bcfd by 2024. This is because several producers have reduced drilling activities following spot gas prices at Henry Hub benchmark. In March, the number of people in poverty fell to its lowest level for 25 years.
EIA: US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, released on Tuesday, predicted that the U.S. electricity consumption would reach record levels in 2024-2025. EIA projects that the demand for electricity will increase to 4,101 billion Kilowatt Hours (kWh) by 2024, and 4,185 billion in 2025. This compares to 4,000 billion kWh by 2023, and a record setting 4,067 trillion kWh by 2022. EIA predicted that by 2024, the number of residential customers would increase to 1…
EIA: US oil demand for June was the lowest since 2020
The U.S. Energy Information Administration reported on Friday that U.S. oil use in June was at its lowest levels for the season since the 2020 coronavirus pandemic. The EIA's proxy of demand, crude oil and petroleum product supply, dropped 2.7% from one month to the next, reaching 20,25 million barrels a day (bpd), in June. This is the lowest June level since 2020. The sharp drop comes after consumption reached a seasonally high of 20,80 million bpd during May. The EIA data also showed that distillate demand was at its lowest seasonal level since 2020.
Freeport LNG plant to resume service in Texas on Thursday, LSEG data indicates
LSEG data indicated that the U.S. liquefied gas (LNG), company Freeport LNG, was on schedule to resume service at its Texas export plant on Thursday. The facility had been shut down on Wednesday. Freeport is one the most watched U.S. export LNG plants in the World because of its history of changing global gas prices every time it restarts or shuts down. However, energy traders noted that the gas prices in other parts of the world did not change much on Wednesday, because…
US Natural Gas Producers Eye More Production Cuts as Prices Fall
After prices fell nearly 40% in just two months, major U.S. gas producers plan to curtail their production further during the second half 2024. The Henry Hub futures price has dropped below $2 per million British Thermal Units (mmBtu) while Waha gas prices in West Texas have fallen to a record low so far this year. As temperatures were cooler than anticipated, the demand for gas fell. In the meantime, supplies had increased as producers boosted production in the second quarter following a 47% increase in prices between April and May.
Cheniere Asks for More Time to Build Texas Corpus LNG Expansion
Top U.S. liquefied natural gas (LNG) exporter Cheniere Energy Inc asked federal regulators to extend the amount of time it has to build the proposed Stage 3 expansion at its Corpus Christi LNG export plant in Texas due to pandemic delays.When the U.S. Federal Energy Regulatory Commission (FERC) approved construction of Stage 3 in November 2019, the regulator gave Cheniere five years, or until around November 2024, to complete the project.Cheniere asked FERC in a filing…
US Drillers Add Oil and Gas Rigs for Fifth Week in Six
U.S. energy firms this week added oil and natural gas rigs for the fifth time in six weeks although growth in the rig count over the past few months has slowed as drillers continue to focus on capital discipline despite firmer oil prices.The oil and gas rig count, an early indicator of future output, rose three to 491 in the week to Aug. 6, energy services firm Baker Hughes Co said in its closely followed report on Friday.The total rig count was up 244 rigs, or 99%, over this time last year.
Top U.S. LNG Exporter Launches Effort to Measure Emissions
Cheniere Energy Inc, said on Thursday it would quantify carbon emissions from its suppliers and production sites and supply the information to customers.LNG buyers have begun asking suppliers for natural gas sourcing data and greenhouse gas emissions to reduce their own carbon footprints. Several LNG producers are proposing adding carbon capture and storage alongside their LNG projects.Cheniere said it signed agreements with five natural gas producers and several academic institutions to implement quantification…
Tellurian to Sell LNG to Gunvor, Delays Louisiana Project Start
U.S. liquefied natural gas (LNG) developer Tellurian Inc said on Thursday it signed a 10-year agreement with commodity trader Gunvor Group for 3 million tonnes per annum (MTPA) of LNG.Tellurian shares soared around 24% on the news to their highest since February.In addition, Tellurian released a presentation that said its proposed Driftwood export plant in Louisiana was positioned for first quarter 2022 commerciality.Analysts at Cowen & Co said in a note that meant…
