North America gas short-term outlook: Lower for longer

Natural gas production growth is slowing down, but will it be enough and in time to avert US gas storage containment? Declining gas drilling activity and deferred well completions are a harbinger for future supply declines but have less of an immediate impact to existing production levels that are still growing. As we enter the summer injection season, North American gas markets ask: • Will gas burns continue to outperform coal burns if higher prices return? • Will producers need to economically shut-in existing production? • How will seasonality impact LNG exports? In this update, we also extend our North America short-term market balances to 2025. Despite the next wave of LNG export projects, oversupplied markets are set to continue. Henry Hub gas prices may be lower for longer.