Natural Gas Summary from the Short-Term
Energy Outlook |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Natural
Gas Summary from the Short-Term Energy Outlook: The
Energy Information Administration (EIA) projects that natural gas prices will
remain high through the rest of 2004 (Short-Term Energy
Outlook, July 2004). Wellhead prices are
expected to average $5.85 per MMBtu from July
through December, while composite spot prices will likely stay well above $6.00. Spot prices
at the Henry Hub averaged $6.34 per MMBtu in May
and $6.27 in June, as strong demand for natural gas coupled with high
petroleum prices has led to higher gas prices despite nearly normal storage
inventory levels. Storage stocks at the end of June, based on monthly data,
were almost 3 percent higher than the 5-year average and 14 percent higher
than last year at the same time. Overall in 2004, spot prices at the Henry
Hub likely will average about $6.12 per MMBtu,
which is 9 percent higher than the 2003 average. In 2005, prices are expected to decrease only slightly as
production gains are expected to be relatively low. Natural gas production is expected to increase by only about 0.5
percent in 2004 and 2005. Despite increases in new natural gas well
completions, which are estimated at close to 20,000 in 2003 and will likely
grow to more than 23,000 wells per year through 2005, production growth will be modest because
of apparently high decline rates from existing wells. Natural gas demand is
expected to increase by about 1.1 percent in 2004, owing to increasing
economic growth, the continuing rise in electricity demand, and
below-average hydroelectric power levels in the
Source: Energy
Information Administration, Short-Term Energy Outlook, July 2004. Need Help? |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For
Technical Problems |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Information Administration, EI 30 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Home | Petroleum | Gasoline | Diesel | Propane | Natural Gas | Electricity | Coal | Nuclear |
Renewables | Alternative Fuels | Prices | States | International | Country Analysis Briefs |
Environment | Analyses | Forecasts | Processes | Sectors |