By: Franyi Sarmiento, Ph.D., Inspenet, August 3, 2022
U.S. natural gas production is expected to reach an all-time high in the coming months, surpassing 100 billion cubic feet per day (Bcfd) by the end of this year, helping to fuel global demand as the world faces severe supply shortages.
Rystad Energy’s analysis shows that production growth from the major U.S. gas-producing Haynesville and Appalachia basins, plus associated Permian gas volumes, will cement the country’s position as the world’s largest gas producer, extending its lead over Russia, and exceeding official U.S. Energy Information Administration (EIA) growth expectations.
For shale gas, Marcellus, Utica and Haynesville will contribute the most. Growth in Appalachia, however, is entirely dependent on the progress of the proposed Mountain Valley pipeline, which still faces significant legal hurdles. Haynesville production alone is expected to grow by a staggering 2.6 Bcfd this year compared to 2021, bringing annual production from the play to more than 14 Bcfd.
Total basin production is also estimated to increase next year, reaching 17.2 Bcfd by the end of 2023. Elsewhere in the United States, gas production from the Woodford Basin could also contribute significant growth to total production in 2023, with an expansion of 1 Bcfd.
Recent increases in the world gas price are driving increased investment by U.S. exploration and production companies seeking to capitalize on competitive break-even costs.
This material from the OilandGasMagazine portal was edited for clarity, style and length.
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