Commodity market report

Bigger wells, smaller markets: North America gas long-term outlook highlights H2 2016

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

Contact us about this report

Report summary

North American gas market fundamentals look stronger for 2017 than any year in the shale gas era: production is declining from both oil and gas plays and pipeline bottlenecks mean that low cost Northeast supply can grow only about 1.7 bcfd next year. Meanwhile exports to Mexico new industrial projects are coming online coal fired power plants are retiring and US LNG export capacity is ramping up leading to Henry Hub prices above US$3.50/mmbtu next year. In the medium term new Northeast pipeline capacity delayed and scaled back relative to developers plans but massive nonetheless debottlenecks enormous amounts of low cost supply. As well Permian breakevens have continued to fall so even a modest recovery in oil prices will again mean growth in associated gas production. North American demand growth remains strong but these two low cost supply sources push Henry Hub prices to less than US$3.25/mmbtu by year end 2018 and an average of about US$2.85/mmbtu in the 2019 23 period.

What's included

This report contains

  • Document

    North America Production-Demand-Prices H2 2016.xls

    XLS 1.06 MB

  • Document

    North America LNG - Imports Exports H2 2016.xls

    XLS 6.33 MB

  • Document

    Bigger wells, smaller markets: North America gas long-term outlook highlights H2 2016

    PDF 336.72 KB

  • Document

    Bigger wells, smaller markets: North America gas long-term outlook highlights H2 2016

    ZIP 6.11 MB

  • Document

    Executive Summary

    PDF 94.64 KB

  • Document

    Supply

    PDF 96.96 KB

  • Document

    Demand

    PDF 100.90 KB

  • Document

    LNG Exports

    PDF 92.32 KB

  • Document

    Price

    PDF 93.50 KB

  • Document

    Policy

    PDF 54.20 KB

Table of contents

  • Executive Summary
  • Supply
  • Demand
  • LNG Exports
  • Price
  • Trade
  • Policy

Tables and charts

This report includes 10 images and tables including:

Images

  • Haynesville drilling locations vs economics
  • Bone Spring productivity and gas content over time
  • US LNG exports
  • Global gas price
  • North America supply growth (year-over-year)
  • Price outlook
  • New Northeast pipeline capacity
  • NA net flows
  • Industrial projects by sector
  • North America generation by fuel

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898