For decades, the United States has been a net energy consumer, consuming more energy than it produces. However, sharp increases in oil and gas production following the shale boom and the ongoing renewable energy revolution have helped change the energy trajectory over the last 15 years. Now, the U.S. The Energy Information Administration (EIA) reports that in 2023, energy production in the United States will outpace consumption.
According to EIA, the Energy production in the United States A 4% increase to nearly 103 quadrillion British thermal units (Quads) by 2023 is a record for the country. In contrast, energy consumption fell by 1% to 94 kw during the same period, meaning production consumption exceeded 9 kw, the widest margin since 1949.
Dry natural gas production is projected to increase by 4% to 2023 and 58% from 2013, while crude oil production is projected to increase by 9% to 2022 and 69% from 2013. Meanwhile, renewable energy production increased by 1% compared to the previous year. 28% from 2013, reaching eight quads of power. Solar power generation is projected to grow by 15% year-on-year through 2023, while wind power generation declines by 2%.
In contrast, U.S. energy consumption fell 1%, largely due to a 17% drop in coal consumption. Demand for coal has been declining for years, hitting its lowest levels in more than a century, with its share of electricity generation shrinking due to its high carbon footprint.
Related Article: US Oil and Gas Drilling Activity Drops Sharply
“Because natural gas is produced as a by-product of crude oil production, natural gas production continues to increase despite low prices. This is especially true in the Permian Basin, which contributes nearly half of US crude oil production.said Chris Higginbotham, a spokesman for the EIA.
Source: US Energy Information Administration
Oil prices continue to rise
Oil prices have rebounded after reversing course in recent weeks on demand concerns. Brent prices rose to $86.39 a barrel on June 4 from $77.52 a barrel. According to commodity analysts at Standard Chartered, global oil demand in April averaged 101.77 million barrels per day (mb/d), or 470 thousand barrels per day more than previous forecasts. Stanchart reiterated its forecast that oil demand will rise the most in June, with the May demand forecast up 0.2 mb/d to 103.3 mb/d and the June projection up 0.3 mb/d to 104.1 mb/d. E.
Meanwhile, the sharp rise in natural gas that began in late April appears to be pausing.
European natural gas futures are trading in a narrow range of €35 per megawatt-hour as traders weigh significant amounts of storage and pre-distribution occupancies. A long streak of EU gas stocks below the five-year benchmark continues, with inventories falling below the five-year average on 57 of the past 62 days. According to the latest data Gas Infrastructure Europe (GIE), inventories stood at 85.25 billion cubic meters (bcm) on June 16, down 0.06 bcm from a year earlier and 12.93 bcm above the five-year average. Weekly formation was 1.75 bcm, 1 bcm below the five-year average. A shift away from extreme surpluses combined with concerns about the reliability of remaining Russian flows to the EU helped support Dutch headline transfer facility (TTF) prices for next month. Gas prices in Europe have been in the range of 33 to 36 euros per megawatt hour (MWh) in 19 of the last 20 trading days.
US natural gas futures fell below $2.61/MMBtu during the intraday session on Friday. EIA creates stock. According to the report, U.S. utilities pumped 52 billion cubic feet of natural gas into inventory last week, down slightly from 53 billion cubic feet. US gas inventories are currently 20.6% above the seasonal norm. Natural gas prices are headed for a third straight week of declines due to rising production, with higher prices in recent weeks encouraging producers. EQT Corporation (NYSE:EQT) and Chesapeake Energy (NASDAQ:CHK) to resume drilling. Gas production in the 48 states averaged 98.6 billion cubic feet per day (bcfd) in June, down from a 25-month low of 98.1 bcfd in May. In terms of demand, above normal temperatures are forecast at least till July 12, maintaining high gas consumption for air conditioning purposes.
Alex Kimani for Oilprice.com
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