EIA slashes price forecast for natural gas amid warmer weather

by Jeff Della Rosa (JDellaRosa@nwabj.com)

U.S. natural gas price projections have been lowered as a warmer-than-average start to 2023 has reduced natural gas consumption to below-average levels, according to the U.S. Energy Information Administration (EIA). The projection reflects a nearly 30% price cut from January expectations.

The EIA released Tuesday (Feb. 7) the February Short-Term Energy Outlook that shows natural gas prices at the Henry Hub are expected to fall by 47% to $3.40 per million British thermal units in 2023 from 2022.

“U.S. natural gas inventories fell by less than our expectations in January because of the warmer-than-average weather,” said EIA Administrator Joe DeCarolis. “With more natural gas in inventory, we reduced our forecast for natural gas prices over the coming year. There is still a lot of uncertainty, including the possibility of extreme weather later this winter that could increase demand and temporarily slow down production, but those possibilities decrease as we approach spring.”

https://talkbusiness.net/2023/02/eia-slashes-price-forecast-for-natural-gas-amid-warmer-weather/

Fewer uncompleted wells may hurt oil production growth; coal-fired generation to fall

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Crude oil production growth could be limited in the United States amid fewer drilled but uncompleted wells and natural gas pipeline constraints, according to the U.S. Energy Information Administration (EIA). Meanwhile, high natural gas prices aren’t expected to keep coal-fired electricity generation from declining this year.

Between July 2020 and September 2022, more oil wells were completed than were drilled in the United States. As a result, the number of drilled but uncompleted wells fell to 4,333, the fewest since at least December 2013.

The decline in the number of drilled but uncompleted wells has coincided with high oil prices and rising domestic production. According to Baker Hughes, the number of active oil rigs has risen to 610 as of Oct. 14 from 172 rigs on Aug. 14, 2020. While the number of active oil-directed rigs that drill new wells increased earlier this year, the rig count has remained flat since July, according to the EIA.

https://talkbusiness.net/2022/10/fewer-uncompleted-wells-may-hurt-oil-production-growth-coal-fired-generation-to-fall/