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Natural Gas Prices Are Influenced by Supply and Demand Estimates (Continued from Prior Part) Natural gas production
The latest figures suggest that the natural gas production from the lower 48 states of the US continued to rise on a weekly and yearly basis. The total natural gas output from the lower 48 states was at 81.89 Bcf (billion cubic feet) for the week ending September 4, 2015. This is 5.70% more than the natural gas produced during the same period in 2014. The natural gas production from the dry production and well-head production also rose for the week ending September 4, 2015—compared to the previous week.
EIA estimates
In its August monthly STEO (Short-Term Energy Outlook) edition, the EIA (U.S. Energy Information Administration) reported that natural gas production might rise by 4 Bcf per day to 78.52 Bcf per day in 2015 and by 1.8 Bcf per day to 80.52 Bcf per day in 2016, respectively. However, natural gas production fell in May and June 2015.
The improvement in the drilling efficiency could support the rise in natural gas production. The rise in natural gas production will come from the Marcellus Shale region in the lower 48 states of the US. The rise in domestic natural gas production may curb natural gas imports in the long term and short term.
The estimates of rising natural gas production will continue to put pressure on natural gas prices in the oversupplied market. The speculation of rising natural gas inventories will also negatively influence natural gas. The consensus of the rising inventory implies that supply is increasing and demand is slowing.
The long-term oversupply concerns are dragging natural gas prices lower. As a result, they impact natural gas producers’ profitability like Range Resources (RRC), Gulfport Resources (GPOR), and Devon Energy (DVN). Combined, they account for 3.44% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is more than 40% of their production portfolio. They also affect energy ETFs like XOP and the Energy Select Sector SPDR ETF (XLE).
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Devon Energy Corporation
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CODE : DVN |
ISIN : US25179M1036 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Devon Energy is a and oil producing company based in United states of america. Devon Energy holds various exploration projects in Canada. Its main exploration property is JACKFISH OIL SANDS PROJECT in Canada. Devon Energy is listed in United States of America. Its market capitalisation is US$ 27.2 billions as of today (€ 25.6 billions). Its stock quote reached its lowest recent point on August 18, 1995 at US$ 10.00, and its highest recent level on February 22, 2008 at US$ 99.19. Devon Energy has 525 000 000 shares outstanding. |