US gross gas output hit record in April: EIA
US natural gas output hit a record high in April above 89 Bcf/d (2.5bn m³/d) as production rose in Texas, Louisiana and Oklahoma.
Gross gas production from the lower-48 states rose in April to 89.1 Bcf/d, up by 0.3pc, or 252mn cf/d from March, the US Energy Information Administration (EIA) said today in its monthly production report. April output has surged by 12pc from a year earlier as new infrastructure allowed more northeast gas to reach market and as producers continued to shore up fresh oil supplies from places like the Permian basin.
Rising gas production and expectations for future supply growth has put downward pressure on prices this year. Natural gas futures so far this summer have failed to sustain a rally above $3/mmBtu, despite low inventories and hot weather, a sign of confidence in continued growth.
Output from Texas, the largest gas-producing state by volume, rose to nearly 23 Bcf/d, up by 1pc from a year earlier and a year-over-year increase of 9pc. Texas is home to a large swath of the Permian, where oil wells can produce large volumes of associated gas.
New Mexico production, which sits atop part of the Permian, increased to 4.1 Bcf/d, a 3.3pc gain from a month earlier and a 13pc rise from a year earlier.
Louisiana output moved 0.5pc higher to 7.5 Bcf/d, a year-over-year increase of 44pc. Louisiana production can act as a bellwether for the Haynesville shale, a gas-rich formation in underlying the northern part of the state and east Texas.
Output from Oklahoma was up by 0.7pc in April to 7.8 Bcf/d, 15pc higher than a year earlier. Producers in that state are developing the Stack and Scoop formations, two oil- and gas-rich fields.
The combined gas production from Ohio, West Virginia and Pennsylvania — three states that represent the Marcellus and Utica shales — dropped in April to 27.1 Bcf/d, down by 0.7pc from March. Production there will likely increase in subsequent reports because new pipelines such as Energy Transfer Partners 3.25 Bcf/d Rover pipeline have expanded service to the area.