EIA Raises Forecast for Natural Gas Production

August 14, 2014 By Karen Henry

natural-gas-consumption-energy-manageThe US Energy Information Administration (EIA) is raising its forecast for onshore marketed natural gas production this year and in 2015, and lowering its natural gas price outlook, according to its August 2014 Short-Term Energy Outlook (STEO).

Natural gas production growth this year and mild weather have contributed to stronger gas injections into storage and lower gas prices this summer, EIA said in a statement. Natural gas storage injections continue on pace for a record refill of 2.6 trillion cubic feet by the end of October. EIA expects that the Henry Hub natural gas spot price, which averaged $3.73 per MMBtu in 2013, will average $4.46/MMBtu in 2014 and $4.00/MMBtu in 2015, $0.31/MMBtu and $0.51/MMBtu lower than in last month’s STEO, respectively.

EIA projects that total renewables use for electricity and heat generation will grow by 2.1 percent in 2014. For the first time, the amount of US electricity generated from wind, solar and other non-hydropower renewables is on track in 2014 to exceed the level of electricity produced from electric-generating dams and other hydropower on an annual basis. In 2015, total renewables consumption for electric power and heat generation will increase by 4.2 percent as a result of increases in hydropower non-hydropower renewables.

Renewable sources, including hydropower, biomass, wind, solar, and geothermal energy, are expected to generate 13 percent of US electricity supplies in 2014. EIA projects that wind power will increase by 7.8 percent in 2014 and 15.3 percent in 2015. The amount of utility-scale solar generation is projected at about .6 percent in 2015—a 96 percent increase from the end of 2013. EIA projects that total U.S. electricity generation in 2014 will grow by 1.1 percent from last year to an average of about 11,200 GWh per day.

 

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