EIA: Strong US NatGas Production Will Continue to Pull Down Prices

摘要

The US Energy Information Administration (EIA) is increasingly bullish on the country's natural gas production, with abundant supplies pushing prices further down the cost curve. Henry Hub prices averaged $3.48 per MMBtu in December, a fall of 64^/MMBtu from the previous month. "Natural gas prices have recently fallen to two-year lows as growing domestic natural gas production has bolstered natural gas inventories," said EIA Administrator Adam Sieminski. The agency expects that increases in drilling efficiency along with growth in oil production will continue to support natural gas production in the years ahead. As a result of strong output, the EIA projects Henry Hub monthly prices to average $3.44/MMBtu this year, a 39(6 drop from last month's estimate. Natural gas prices are expected to remain under $4/MMBtu until the fourth quarter of 2016.