Higher wholesales for U.S. natural gas prices in 2021-2022 are anticipated by EIA, as stated in their latest January forecast.
EIA expects higher natural gas prices might make dry natural gas production increase in the second half of 2021, after hitting a monthly low of 87.3 bcf/d in March 2021. As natural gas production has fallen amid low natural gas and crude oil prices since early 2020, the administration forecasts that dry natural gas production will decline, going from an average of 90.8 Bcf/d in 2020 to 88.2 Bcf/d in 2021.
The report also shows U.S. natural #gas consumption declining in 2021, primarily driven by a decrease in the electricity sector's natural gas consumption.
It seems that higher natural gas prices and an increased renewable generation capacity & increased generation from renewable sources. EIA forecasts natural gas consumption in the electric power sector to also decline in 2022.
EIA forecasts slight increases in natural gas consumption in the industrial, residential, and commercial sectors, from an upcoming desired economic growth, and slightly cooler winter weather.
Natural gas exports are said to continue to exceed natural gas imports in 2021 and 2022, with exports of liquefied gas coming close to equal.
Sources: eia.gov
