US Gas Output Growth on Hold

US Gas Output Growth on Hold
US Gas Output Growth on Hold

US natural gas production growth could be on pause until more LNG export capacity comes on stream later this decade, panelists speaking from Hart Energy's Super Dug conference in Fort Worth, Texas, said recently.
While underinvestment in crude production in the US and globally could fuel a rally in the oil markets later this year, according to market experts at the conference, many were less confident about the short-term outlook for US natural gas, S&P Global Commodity Insights reported.
"We do not want to lean into the natural gas drilling right now," said keynote speaker Clay Gaspar, executive vice president and COO of Devon Energy. 
"I personally still think there is a tremendous amount of pressure on natural gas right now," he said in the conference's opening session on May 22.
From January to September 2022, US gas production leaped by about 170 million cubic meters per day, as global gas prices surged, US LNG export capacity expanded and domestic gas-fired power demand jumped while US coal plants continued to retire. 
Since topping 3 bcm/d last fall though, US gas production growth appears to have largely stalled out, data from S&P Global Commodity Insights showed.
In 2022, much of the growth in US production was fueled by just two basins – the Permian and the Haynesville – both of which now face different challenges.

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