EIA Sees Continued Gas Strength in 2020
The US Energy Information Administration (EIA), in a Short-Term Energy Outlook (Steo) released January 14, said US dry gas production will rise again this year after posting a record in 2019, but prices at Henry Hub will weaken further, before recovering slightly in 2021.
Dry natural gas production averaged a record 92bn ft3/day in 2019, the EIA said, and will increase again in 2020, to 94.7bn ft3/day. Production will slip in 2021, however, to 94.1bn ft3/day as Appalachian output shifts from growth this year to decline in 2021.
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The EIA is forecasting the benchmark Henry Hub gas price to average $2.33/mn Btu this year, down from $2.57/mn Btu in 2019, but sees some recovery in 2021, to a $2.54/mn Btu average.