U.S. Gas Production and Consumption Set New Records in 2013

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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The U.S. produced and consumed record levels of natural gas in 2013, according to a recently issued study from the U.S. Energy Information Administration (EIA) (Washington, D.C.), the statistical and analytical branch of the U.S. Department of Energy (DoE) (Washington, D.C.). That 213-page report, Natural Gas Annual - 2013, also showed gas consumption by the electricity sector fell last year, mainly a function of a 27% increase, nearly $1 per thousand cubic feet, charged to electric generators. The agency also noted that gas exports rose last year for the fifth year in a row, while imports held steady.

Dry gas production reached 24.4 trillion cubic feet (Tcf) in 2013, a slight increase over 2012 levels, but a meaningful increase over 2009 production of 20.6 Tcf, the EIA said. Texas maintained its traditional position as the largest gas-producing state, but Pennsylvania took second place, driven by production from the Marcellus Shale. Louisiana slipped to third place, followed by Oklahoma, Wyoming and Colorado.

Click on the image at right to see gas production from selected states in 2013 and 2012.

Turning to consumption by sector, the EIA found that gas consumption by electricity producers fell about 10%, to about 8.2 Tcf in 2013 compared to 9.1 Tcf in 2012. In 2013, average prices to electricity producers rose sharply from 2012 levels, causing some generators to burn more coal. Electricity producers paid an average of $4.49 per Mcf last year, up from the $3.54 they paid, on average, per Mcf in 2012.

Texas' electric generators burned more gas than any other state, followed by Florida, California and New York, the EIA said.

Industrial consumption of gas rose in 2013, to 7.4 Tcf from 7/1 Tcf in 2012 and 6.2 Tcf in 2009. The shale revolution has produced ample supplies of natural gas, helping keep prices affordable and stimulating incremental demand among gas-intensive industrial producers like petrochemical plants. For more on that trend, see May 14, 2014, article - Marcellus Gas Transforms Chemical Processing, Gas Production Industries.

Industrial concerns in Texas burned more gas than any other state last year, followed by Louisiana, California and Indiana, the EIA said.

Click on the image at right to show U.S. gas consumption by sector, 2009-13.

Gas imports continued to decline in 2013, the EIA reported, continuing a five-year trend. Last year, the U.S. imported about 2.9 Tcf of gas, mainly via pipeline from Canada. By contrast, imports were about 3.1 Tcf in 2012 and about 3.75 Tcf in 2009. Gas exports essentially were flat last year at approximately 1.6 Tcf.

Click on the image at right to see U.S. gas exports and imports, 2009-13.

"The EIA Natural Gas Annual shows how the U.S. has benefited from the shale revolution," commented Jesus Davis, Industrial Info's vice president of research for the Oil & Gas Production, Pipelines and Terminals industries. "Gas production is up, consumption is up, and imports are down. That means more of our nation's energy dollars stay here in the U.S. We also know the shale revolution has triggered billions of dollars of incremental investment, as well as hundreds of thousands of new jobs. Increased use of natural gas has cleaned our environment and helped our nation improve its balance of trade. We see that trend accelerating in the coming years, as proposed liquefied natural gas (LNG) terminals come online, pushing up U.S. gas exports."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.