Lots of upside for our "gassers" - April 22

[dan_s]

In "Post Pandemic World" demand for U.S. natural gas is going to ramp up quickly and gas prices will need to move higher to stimulate more drilling.

Rystad: A US gas boom is coming
OGJ editors
Apr 22nd, 2021

Natural gas production in the US is set to grow to a record 93.3 bcfd in 2022 and will continue to rise, exceeding 100 bcfd in 2024, according to Rystad Energy analysis. Performance of the country’s key gas basins will attract increased interest from investors and markets, as a result, with CO2 emissions intensity, capital efficiency, and potential bottlenecks drawing scrutiny, Rystad said.

US’s gas output reached a record 92.1 bcfd in 2019, but production subsequently declined to 90.8 bcfd in 2020 as a result of the COVID-19 pandemic. Rystad expects 2021 volumes to fall even further, to 89.7 bcfd, but the trend will quickly change as the effect of the pandemic subsides and activity builds across the major gas basins. < MY TAKE: It will take ngas prices over $3.00 to get the "gassers" to ramp up production.

The Appalachian basin was the US’s lowest in 2020 in terms of CO2 emissions intensity, according to the analysis, and the region is set to report a record-high capital efficiency in 2021 as reinvestment to maintain output will drop to its lowest level. Meanwhile, the Haynesville will offer the largest gas output growth going forward, risking bottlenecks unless more pipelines are approved. (Good news for CRK and GDP).

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