Supply & Demand

Liquids shield US producers from low gas prices – EIA

A grim outlook for United States natural gas prices has failed to deter robust production growth, as revenues from liquids drilling helps offset low returns on dry gas.
By Conway Irwin 8 December 2011 0 3015

A grim outlook for United States natural gas prices has failed to deter robust production growth, as revenues from liquids drilling helps offset low returns on dry gas.

The US Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, released on Wednesday, cut its forecast for average 2011 prices by $0.07 per million Btu (MMBtu), to $4.02/MMBtu, noting that a drop in November Henry Hub spot prices to $3.24/MMBtu marked the fifth consecutive month of falling prices.

The agency also shaved $0.43/MMBtu from its month-ago forecast for 2012 Henry...