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Tuesday 4 February 2014

US Natgas withdrawals rise to new record for lower-48 output

Gross withdrawals of natural gas in the Lower-48 rose 1.13 Bcf/d, to 75.95 Bcf/d, in November 2013, according to the latest EIA Monthly Natural Gas Gross Production Report. This sets a new record for lower-48 output. The reported production growth fell slightly short of pipeline flow estimates, which had pointed to a 1.5 Bcf/d increase, according to a Barclays report.
The bulk of the growth came from Other States, where production had an equivalent 1.13 Bcf/d rise from October levels. Other States include the Marcellus shale in Pennsylvania, where producers connected numerous recently completed wells to several newly constructed pipelines that started operation in November.
Elsewhere, production was nenaturarly unchanged in Louisiana, which is a sign of strength compared with 200-300 MMcf/d m/m declines in August-October. Texas output dropped 250 MMcf/d, largely as a result of weather-related issues and maintenance outages during November. Similar factors dragged New Mexico production 110 MMcf/d lower than in the previous month. Production jumped 250 MMcf/d in the Gulf of Mexico, mainly as a result of production returning to normal levels following Tropical Storm Karen in the previous month.
In aggregate, onshore lower-48 production maintains a robust growth trend. In November 2013, gross withdrawals were 72.38 Bcf/d, up 3.79 Bcf/d from November 2012 levels.
October 2013 production was revised higher by 220 MMcf/d, largely as a result of a 210 MMcf/d upwards revision to Texas production.
"While we expect production to remain in growth mode for the foreseeable future, the next several reports are likely to show m/m declines, as numerous wells were affected by widespread freeze-offs across the country. Pipeline flow reports point to a 1 Bcf/d m/m drop in production in December," Barclays said.

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