US gas production to increase in August: EIA
US natural gas production is expected to increase slightly in August from July levels, while staying within range of output from last year, the US Energy Information Administration (EIA) reported July 12.
The drilling productivity report for the month estimates that total US natural gas production settles at 85.4bn ft3/d this month and increases to 85.5bn ft3/d on average for August. Of the seven primary shale basins assessed by the agency, which is part of the Energy Department, only the Haynesville play and the Permian basin are expected to show gains next month.
Haynesville production is forecast to increase from 13.3bn ft3/d on average in July to nearly 13.5bn ft3/d next month. Known primarily for shale oil production, the Texas-centred Permian basin is also the second-largest gas producer, behind the Appalachia shale. Permian gas production is expected to increase only marginally, however, by 46mn ft3/d to reach 18.1bn ft3/d on average in August.
Production from the Appalachia shale, which includes both the Utica and Marcellus plays, is forecast to post slight declines in production, by 13mn ft3/d, to 34.3bn ft3/d next month.
Year-on-year, the production trends show relative consistency across all major gas basins. That comes as commodity prices hover at multi-year highs, though drillers have exercised restraint.
source: EIA
Baker Hughes last week put the total US rig count at 479. There were 958 rigs in service in the US during the comparable week two years ago.