U.S. Gas Consumption to Jump 5% this year
Wednesday, July 11, 2012
In its latest short-term energy outlook, the Energy Information Administration (EIA) said U.S. natural gas consumption will average 69.9 Bcfd (1.9 x 109 m3/d) this year, up 3.3 Bcfd (93.4 x 106 m3/d) and nearly a 5% gain from 2011.
EIA said the increase will be driven by a 21% growth in the use of gas for the electric power generation, due to its low price in relation to coal.
The agency said gas production should fall in coming months, reflecting the drop in drilling rigs since October 2011, itself a response to low gas prices. EIA said the latest tally found 542 rotaries drilling for gas, the fewest since 1999.
The price for natural gas at the benchmark Henry Hub in Louisiana averaged US$2.47 per MMBtu during June, 46% less than in the same month last year, a drop that EIA attributed to “abundant supplies and lack of demand during the warm winter.”
It predicted Henry Hub would see modest monthly increases through the rest of the year, averaging US$2.58 per MMBtu for 2012 and rising to $3.22 per MMBtu in 2013.
For more information: www.eia.gov