Today's Trends: Shale Gas Production Reduced Gas Imports in 2009
Net U.S. imports of natural gas reached the lowest level seen since 1994, or 12 percent of total consumption, as the surge in shale gas activity continues to push gas production in the U.S. Lower 48 states, the U.S. Energy Information Administration (EIA) reported this week.
Dry natural gas production increased 3.3 percent compared with 2008 and was nearly 9 percent higher than in 2007. Recent gains in domestic production has made the United States is the largest producer of natural gas in the world. At the same time, U.S. domestic consumption decreased in 2009, which in turn contributed to a reduced demand for imports.
Although liquefied natural gas (LNG) gross imports increased almost 30 percent (from a 5-year low established in 2008), LNG remains a very small source of supplies for the United States, accounting for less than 2 percent of consumption.
Gross imports (including both natural gas transported by pipeline and LNG) continued to decline in 2009 after a relatively large decrease in 2008. As a result, gross imports were nearly 850 Bcf lower in 2009 than in 2007. Net imports, which reached a recent peak as a portion of consumption at 16 percent in 2007, represented only 12 percent of total domestic consumption, at a total of 2.7 trillion cubic feet (Tcf), in 2009. The decrease in net imports resulted from a decline in gross imports and an increase in gross exports.
With the increase in natural gas production, import and export prices were both more than 50 percent lower in 2009. Monthly average prices peaked in January and then declined significantly during the year to the lowest prices seen in the natural gas market since 2002.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally