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EIA: US natural gas production decreased in 2020

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According to the U.S. Energy Information Administration (EIA), US natural gas production — as measured by gross withdrawals — averaged 111.2 billion ft3/d in 2020, down 0.9 billion ft3/d from 2019 as result of a decline in drilling activity related to low natural gas and oil prices in 2020.


U.S. Energy Information Administration, Monthly Crude Oil and Natural Gas Production Report, Natural Gas Monthly
Note: Natural gas production is measured as gross withdrawals.

The 2019 record-high increase in natural gas production led to higher volumes of natural gas in storage and lower natural gas prices. Beginning in March 2020, warmer-than-average weather along with the effects of the responses to COVID-19 drove down natural gas demand and further reduced prices. The lowest average monthly US natural gas production volume was in May 2020 at 106.4 billion ft3/d. By December 2020, natural gas production had increased to 113.0 billion ft3/d, the EIA states.

The Appalachia region remains the largest natural-gas producing region in the US. Natural gas production from the Marcellus and Utica/Point Pleasant shales of Ohio, West Virginia, and Pennsylvania continued to grow despite low regional natural gas spot prices. Natural gas production from these three states increased from 32.1 billion ft3/d in 2019 to 33.6 billion ft3/d in 2020. Within the Appalachia region, West Virginia had the largest increase in natural gas production, increasing by 1.2 billion ft3/d, or 20%, to reach 7.1 billion ft3/d. Natural gas production increased by 1.0 billion ft3/d in Pennsylvania and decreased by 0.7 billion ft3/d in Ohio, according to the EIA.p>

In 2020, Oklahoma had the largest decrease in natural gas production, falling by 1.1 billion ft3/d, or 13%, to an annual average of 7.6 billion ft3/d. Texas remained the largest natural-gas producing state, although natural gas production in the state decreased from 28.4 billion ft3/d in 2019 to 28.1 billion ft3/d in 2020, the EIA states.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03032021/eia-us-natural-gas-production-decreased-in-2020/

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