Tue Dec 8, 2009 5:33pm GMT
NEW YORK, Dec 8 (Reuters) - The U.S. Energy Information Administration on Tuesday slightly raised its estimate for domestic natural gas production in 2009, noting minimal hurricane disruptions this year and significant growth in onshore shale output have contributed to increased supplies.
In its December Short-Term Energy Outlook, EIA said it expected marketed natural gas production to be up 3.7 percent in 2009, primarily due to strong shale output, then decline by 3.1 percent in 2010 to about 58.37 billion cubic feet per day.
EIA also forecast U.S. natural gas consumption this year would average about 62.15 billion cubic feet per day, down 1.9 percent from last year due to a steep decline in demand from the industrial sector.
EIA said it expected gas demand in 2010 to ease 0.4 percent to about 61.88 bcf per day, as gains in residential, commercial and industrial use next year partly offset the expected large decline in the electric power sector due to some reversal of the coal-to-natural-gas switching that took place this year.
EIA also expects Henry Hub natural gas prices next year to rise 17 percent from 2009 to $4.62 per thousand cubic feet but said gains should be limited by relatively strong domestic production, lower electric power use and uncertainty about the recovery in industrial demand (Reporting by Joe Silha; Editing by Marguerita Choy)
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Source: http://uk.reuters.com/article/idUKN0820693320091208
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