Natural Gas Production Is Too High To Warrant More Upside For Now
Natural gas prices corrected lower today following the higher-than-expected Lower 48 gas production reading.
Production hit ~107 Bcf/d again this weekend. The higher natural gas production reading is coming from every corner of the US.
In the Northeast, production is on track to be ~2.7 Bcf/d higher y-o-y.
Texas natural gas production has stalled marginally, but is still on pace to be ~1 Bcf/d higher y-o-y.
Southeast is now contributing to +1 Bcf/d higher y-o-y as well.
The delta is primarily the result of meaningfully lower production we saw last year amidst low prices, as natural gas producers shut in production. But with the rebound we've seen, rigs are now being reclassified from oil to natural gas, and producers are keeping production elevated.