Commodity Market Report
North America gas long-term outlook H1 2019 highlights: market shows resilience in the face of associated gas
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Report summary
Associated gas production out of the Permian is booming, and there are no signs of a slow down. By 2021, West Texas is set to deliver nearly 5 bcfd of additional associated supply as operators shift into manufacturing-style of development. What impact will this have on dry gas production and Henry Hub prices? Our latest North American gas long-term outlook reveals remarkable resilience in the gas markets despite the rapidly rising associated supply. Dry gas production will still grow but at a slower pace. Stronger LNG demand will serve as an increasingly critical outlet, protecting Henry Hub from further downside risks throughout our forecast window. In the long term, deferred drilling today due to low pricing will preserve dry gas well inventories into the 2030s. Another wave of LNG hits, but even then, the ascent of Henry Hub remains relatively contained.
Table of contents
- What's behind the growth?
- Permian snapshot
- Dry gas plays: a new pecking order?
- The new (and steeper) dry gas cost curve
Tables and charts
This report includes 5 images and tables including:
- Dry gas production by play
- New industrial capacity by sector
- U.S. power generation by source
- Exports by source terminal
- Gas price forecast
What's included
This report contains:
