Bentek Energy, an oil and gas forecasting and analysis subsidiary of Platts, recently announced natural gas production in June reached 68.1 billion cubic feet per day (Bcf/d) in the continental U.S., which was up 0.3 percent from May.
However, last month saw the largest-producing day of natural gas in U.S. history, and Bentek forecasts July's highest daily production could break June's record next month. In comparison to June 2013, the 2014 June daily average was 5.4 percent higher or 3.5 Bcf/d more than last year.
“While the pace of production gains slowed slightly this month, the magnitude of the overall increase in domestic natural gas production is remarkable,” said Jack Weixel, the director of energy analysis at Bentek.
The oil and gas analyst also predicted the production rates in natural gas would continue to rise because of the success in U.S. basins such as the Eagle Ford and Permian in Texas and the Bakken in North Dakota, which are liquids-rich regions.
In addition, other shale regions are helping keep production steady as the Marcellus in Pennsylvania and West Virginia continues to grow, and the Utica Shale in Ohio bumps up total gas recovery as well.
“To think that just five years ago in 2009, the U.S. was averaging only 55.1 Bcf/d of production really puts the recent run of 68 Bcf days in perspective,” Weixel added. “As we enter the summer's peak energy demand period, both wholesale and retail consumers of natural gas should feel more at ease about prices with this amount of supply at hand.”
Advanced drilling creating more possibilities for U.S.
The U.S. has seen some of its shale regions surge because of the advanced drilling technology used for hydraulic fracturing, which makes it easier to recover gas resources from shale deposits, The Hill reported. The production has increased so much that U.S. gas prices are around one-half to one-third the prices in Asian and European countries.
“The report talks about projects that are largely already tied in,” and growth in the Marcellus is limited by a lack of infrastructure, said Teri Viswanath, director of commodities strategy at BNP Paribas SA, according to Bloomberg. “Unless we see production gains out of the Haynesville or Permian Basins, which aren't constrained, the new sources of supply are constrained and we will not likely see another production surge until later in November.”
Not only is the U.S. natural gas production helping the energy industry, but the manufacturing sector is seeing a spike in job creation and production growth through the shale boom, The Hill reported.
By 2015, total natural gas production could reach 44 Bcf/d, which could result in upstream capital expenditures for more than $66 billion, which would create more than 515,000 supply chain jobs, the source reported. By 2020, production could rise to nearly 60 Bcf/d, which would bring another 150,000 new supply chain jobs as well.
For these figures to remain, oil and gas well owners need to keep steady production levels. Broadwind Energy can supply original equipment manufacturers with a wide range of precision gearing parts needed to keep wells running efficiently.