BAKU, Azerbaijan, May 8. Dry gas output in the US is forecast to increase by about 2 percent in 2023, Trend reports citing the latest global gas market outlook from the International Energy Agency (IEA).
US dry gas production grew by an estimated 4 percent year-on-year from October 2022 through March 2023, reaching an average daily level of 100 bcf in the first quarter of 2023, or a 5.7-percent increase year-on-year, the IEA said.
"This increase was primarily led by associated production from oil-driven shale plays, which increased by close to 8 percent year-on-year during October to January. Output from the Permian Basin, the largest oil-driven shale play, grew by close to 11 percent year-on-year over the same period. This has been supported by strong drilling activity, with an average of close to 430 new wells drilled per month in the Permian during October to January, or a 33 percent year-on-year increase, whereas completion rates increased by only 4 percent year-on-year over the same period, to a monthly average of 435 wells," the report said.
According to the agency, this growth will be mostly supported by the increase in associated gas production, but, at the same time, pure gas shale plays are expected to see only limited growth.
As the IEA noted, US natural gas production in 2022 increased by 3.7 percent rise. However, the country's output is projected to slow down in the current year, as combination of continued conservative upstream spending, cost inflation, limited export outlets and an expected decline in domestic demand will prevail.