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Report: U.S. production surge may revive natural gas glut

Published 06/28/2017, 06:21 PM
Report: U.S. production surge may revive natural gas glut
  • The rebound in U.S. natural gas prices above $3/MMBtu could be derailed this summer by a looming supply glut, some analysts and market participants say.
  • Companies have been accelerating drilling in 2017 to capture higher profits and meet demand for low-cost gas in the U.S. and abroad, and international markets drew more heavily on U.S. supplies this year.
  • A ramp up in gas drilling in the Marcellus and Utica shales, and new pipeline infrastructure in the northeast promises to push more gas into the U.S. market, and oil drilling in the Permian Basin, an area rich with associated gas, also should boost production.
  • Additional production from those fields and other gas-rich formations could lift 2017 U.S. gas output by 3B cf/day in 2018, Tudor Pickering Holt's David Pursell tells Argus Media - enough gas to offset the 700M cf/day increase this year in gas pipeline exports to Mexico and the 1.5B cf rise in gas intake at Cheniere Energy's Sabine Pass export terminal in Louisiana.
  • ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, GAZ, KOLD, UNL, GASX, DCNG, GAZB
  • Now read: What Are The Natural Gas Traders Saying?

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