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US gas production
is rising alongside
demand for LNG.

EIA revises US gas production

outlook upwards

US THE US Energy Information Administration 2022, compared with $101.17 per barrel previ-
(EIA) is projecting that US natural gas produc- ously. It projects that Brent will average $103.37
tion will average 97.41bn cubic feet (2.76bn cubic per barrel this year, down slightly from $105.22
metres) per day in 2022. The figure, included per barrel in its last STEO. At the same time,
in the agency’s Short-Term Energy Outlook though, the EIA revised its gas price forecast
(STEO), marks a slight upward revision from its strongly upward and now anticipates that Henry
previous forecast of 96.69 bcf (2.74 bcm) per day. Hub will average $5.23 per million British ther-
At the same time, the EIA scaled back its pro- mal units ($144.66 per 1,000 cubic metres), up
jection for US oil production slightly, to 12.01mn from a previous projection of $3.95 per mmBtu The EIA is
barrels per day from 12.03mn bpd previously. ($109.26 per 1,000 cubic metres).
However, this would mark an increase from out- The projections were released as the war in forecasting
put of 11.19mn bpd in 2021. It is worth noting Ukraine continues to put upward pressure on
that other organisations are also anticipating US commodity prices. Natural gas demand in par- that global oil
oil production will rise, with East Daley Capital ticular is seen as going up as European countries
forecasting that the country’s output will reach try to reduce their dependence on Russian gas, production will
12.86mn bpd by the end of the year, growing by with US LNG seen as an attractive alternative. reach 100.21mn
1.29mn bpd. These forecasts come despite supply Gas is also seen as a cleaner fuel than oil and thus
chain and labour constraints, driven by higher a more popular longer-term energy source in bpd in 2022, up
oil prices and expectations of strong demand. the context of decarbonisation and the energy
The latest EIA outlook is subject to “height- transition. Indeed, while the war is anticipated from 95.55mn
ened levels of uncertainty resulting from a vari- to drive up interest in renewables as countries
ety of factors, including Russia’s further invasion seek to bolster their energy security, it is also bpd last year.
of Ukraine”, the agency warned. Both its US considered likely to improve the medium-term
liquid fuels and natural gas demand projections prospects of gas – or at least non-Russian gas.
for 2022 have been trimmed slightly, to 20.58mn The EIA is forecasting that global oil pro-
bpd and 84.11 bcf (2.38 bcm) per day respec- duction will reach 100.21mn bpd in 2022, up
tively, from 20.65mn bpd and 84.59 bcf (2.40 from 95.55mn bpd last year. Its projection for
bcm) per day previously. this year represents a slight downward revision
The agency also reduced its oil price forecast from a previous figure of 101.00mn bpd. The
for the year, and now expects West Texas Inter- agency does not forecast global gas production
mediate (WTI) to average $97.96 per barrel in in its STEO.™

P8 www. NEWSBASE .com Week 15 14•April•2022