Henry Hub daily natural gas spot price reached all-time lows in November
Note: Prices are adjusted for inflation based on the October 2024 Consumer Price Index.
The U.S. benchmark Henry Hub daily natural gas price fell to $1.21 per million British thermal units (MMBtu) on November 8 and November 11, 2024, an all-time low in inflation-adjusted dollars. Four of the record-low daily prices when adjusting for inflation occurred in November 2024, and the remaining six occurred in 2024 as well. The Henry Hub spot price in November averaged $2.12/MMBtu, the lowest average price for that month ever when adjusting for inflation.
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Improving well productivity helps U.S. oil companies increase production at a lower cost
Note: Permian crude oil production shows monthly data smoothed over a 12-month period.
Second-quarter 2024 financial results for 34 publicly traded U.S. oil exploration and production (E&P) companies suggest increasing well productivity is helping these companies reduce production costs on a per barrel basis and freeing up cash for other uses such as dividends and share repurchases.
Read More ›Tags: wells, production/supply, oil/petroleum, crude oil, liquid fuels, rig count, Permian
Five states drove record U.S. natural gas production in 2023
Note: 2024 YTD=Jan–Aug
Five states produced more than 70% of the record 113.1 billion cubic feet per day (Bcf/d) of U.S. marketed natural gas production in 2023. Texas accounted for 28% of U.S. marketed natural gas production in 2023, according to our Natural Gas Monthly, followed by Pennsylvania (18%), Louisiana (10%), West Virginia (8%), and New Mexico (8%). Even though production slowed in 2024, output from these five states continued to make up most—73%—of marketed U.S. natural gas this year.
Read More ›California law and refinery closure reflect ongoing challenges for the state’s fuel market
On October 14, California Governor Gavin Newsom signed bill Abx2-1 into law, empowering California regulators to set and adjust minimum petroleum product inventory levels for refiners in the state, in part to address the state’s fuel price volatility. Shortly after, refiner Phillips 66 announced plans to close its Wilmington refinery in Los Angeles by the end of 2025, citing uncertainty surrounding the long-term sustainability of the refinery.
Read More ›Argentina’s crude oil and natural gas production near record highs
Crude oil and natural gas production in Argentina are both nearing record highs, driven by increasing output from the Vaca Muerta shale formation, which is offsetting declining output from conventional oil and natural gas fields. From January 2021 through September 2024, crude oil production in Argentina increased by 50%, and natural gas production rose by 27%, lifting output of both fuels near the records set in the early 2000s, according to data from the country’s energy ministry, the Secretaría de Energía de la República Argentina (SESCO).
Read More ›Tags: Argentina, crude oil, natural gas, production/supply
U.S. share of electric and hybrid vehicle sales reached a record in the third quarter
This TIE has been updated to reflect a data correction.
Note: EV=electric vehicles, including both battery electric and plug-in hybrid electric vehicles
The share of electric and hybrid vehicle sales in the United States increased again in the third quarter of 2024 (3Q24), reaching a record. Combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) increased from 19.1% of total new light-duty vehicle (LDV) sales in the United States in 2Q24 to 21.2% in 3Q24, according to estimates from Wards Intelligence.
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Small volumes of renewable diesel are now consumed on the U.S. East Coast
Note: Consumption is defined as product supplied plus refinery and blender net inputs.
In 2024, the U.S. East Coast became a consistent destination for small volumes of renewable diesel as a few suppliers and local governments began offering or consuming the fuel. Because no renewable diesel is produced on the East Coast, suppliers and local governments are procuring their supply from a combination of imports and interregional U.S. shipments.
Read More ›U.S. inventories enter the winter with the most natural gas since 2016
Working natural gas in storage in the Lower 48 states ended the natural gas injection season with 3,922 billion cubic feet (Bcf), according to estimates based on data from our Weekly Natural Gas Storage Report released on November 7. U.S. inventories are starting winter 2024–25 with the most natural gas since 2016. Inventories are currently 6% above the five-year (2019–23) average, despite less-than-average injections into storage throughout the entire injection season, which runs April 1 through October 31. Less natural gas than the five-year average was injected in nearly every week during the 2024 injection season, in part because starting inventories were relatively full.
Read More ›Tags: inventories/stocks, weather, natural gas, storage
U.S. gasoline prices this Thanksgiving are at their lowest since 2020
On the Monday before Thanksgiving, the retail price of regular gasoline averaged $3.04 per gallon (gal) across the United States, 7% less than the same time last year. Retail gasoline prices this Thanksgiving are at their lowest since 2020, when the COVID-19 pandemic disrupted gasoline demand.
Read More ›Tags: gasoline, liquid fuels, prices, crude oil, oil/petroleum
U.S. crude oil production established a new record in August 2024
An average of 13.4 million barrels per day (b/d) of crude oil was produced in the United States during August 2024, a new record according to data from our Petroleum Supply Monthly. More crude oil was produced in the United States during August 2024 than during December 2023, when the previous monthly record of 13.3 million b/d was set.
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Global natural gas market may experience a tighter supply-demand balance this winter
Note: Price curves as of November 21, 2024. Dotted lines represent forward prices. LNG=liquefied natural gas; Asian LNG=the JKM price benchmark (representing spot and forward LNG prices in Japan, South Korea, Taiwan, and China); European natural gas=benchmark prices at the Title Transfer Facility (TTF)
The last two winters in the Northern Hemisphere were exceptionally mild, keeping global natural gas markets well supplied and balanced at relatively low prices. Prices going into this winter are only slightly higher than last year at the same time based on current forward natural gas and liquefied natural gas (LNG) prices in Europe and Asia. If weather remains mild this winter as in the past two winters, we expect a relatively stable global supply-demand balance with prices similar to the previous two winters. But if Europe and Asia experience colder temperatures this winter than in the past two years or other operational and market risks materialize, global supply-demand balances could tighten, leading to elevated natural gas prices and potential price spikes.
Read More ›Tags: international, natural gas, production/supply, consumption/demand, pipelines, China, exports/imports, liquid fuels, Russia, LNG (liquefied natural gas), Europe, Brazil, forecasts/projections, infrastructure, inventories/stocks, Japan, Italy, Netherlands, Norway, policy, prices, spot prices, STEO (Short-Term Energy Outlook), storage, storage capacity, United States, weather
U.S. propane inventories are well stocked heading into the winter heating season
The United States is well stocked with propane heading into the winter heating season, which runs from November through March, with U.S. propane inventories at the top of the five-year range spanning the winter of 2019–20 to the winter of 2023–24.
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What’s driving decreasing gasoline consumption in China?
Note: We define apparent demand as refinery production plus imports minus exports.
Gasoline consumption in China has begun to fall in recent months amid increased sales of electric vehicles, slow economic growth, and population decline.
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Northwest U.S. and western Canadian natural gas prices trade at historic lows in 2024
Note: Prices are adjusted for inflation based on September 2024 Bureau of Labor Statistics’ Consumer Price Index data.
Monthly average natural gas spot prices at northwestern U.S. and western Canada border pricing hubs reached historic lows in 2024 through October, according to data from Natural Gas Intelligence. Robust natural gas production in western Canada, where output has generally increased over the last two years, and high natural gas inventories in the region contributed to the low prices.
Read More ›Tags: natural gas, prices, United States, Northwest, Canada
Grid infrastructure investments drive increase in utility spending over last two decades
Note: O&M=operation and maintenance
Annual spending by major utilities to produce and deliver electricity increased 12% from $287 billion in 2003 to $320 billion in 2023 as measured in real 2023 dollars, according to financial reports to the Federal Energy Regulatory Commission (FERC). Capital investment in electric infrastructure mostly drove the increase, more than doubling over the period as:
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