U.S. Natural Gas Production Will Increase In 2017
After the first fall in U.S. dry gas production in more than a decade in 2016, output is sure to regain its upward trend in 2017. No wonder, EIA has Henry Hub prices increasing from $2.50/MMBtu last year to nearly $3.30 this year.
Again, regardless of what some keep telling you, we have baseload gas demand markets that are continually growing: gas for electricity, gas for industrial use, gas for LNG export to the world, gas for piped export to Mexico and Canada. And don’t underestimate emerging idiosyncratic uses, such as gas in heavy trucking and gas as the required backup for wind and solar power.
Let’s be perfectly clear, following “the California model,” as environmental groups and President Obama’s EPA want us to, has a known bottom line: more renewables ultimately mean more natural gas (see my article here).
Written by Jude Clemente