US natural gas production to decline in June
Natural gas production from US shale basins is on pace to decline slightly next month, with output from the Bakken and Appalachia leading the slump, US federal data published May 17 show.
The US Energy Information Administration (EIA), in its monthly drilling productivity report, forecast natural gas production in June would average 83.5bn ft3/day, a slight decline from the 83.6bn ft3/d expected for March.
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By percentage, the Bakken shale leads the decline, slowing from 2.8mn ft3/d in May to 2.7mn ft3/d in June, a 2% decline. The largest inland gas producer in the nation, the Appalachia shale is expected to average 34.2mn ft3/d next month, marking a 0.15% decrease from May.
The latest rig count provided by Baker Hughes, using data from Enverus, shows drilling activity declined during the week ending May 14, with the Haynesville play, among the largest gas producing basins in the nation, losing one rig.
Nevertheless, Haynesville production is expected to accelerate in June, increasing from the 12.6mn ft3/d in May to 12.8mn ft3/d, a 0.9% increase. Gas production from the Permian shale, the only other basin expecting an increase, climbs just a small fraction of a percent from the 17.5ft3/d expected this month.
EIA in its monthly market report for May forecast US natural gas production will average 91.1bn ft3/d this year, a 0.3% decline from 2020. Much of that decline stems from inclement weather in February that idled large parts of the US energy sector.