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Narrow margins are back for US gas, but will producers slow output?

Narrow margins are back for US gas, but will producers slow output?

FromCommodities Focus


Narrow margins are back for US gas, but will producers slow output?

FromCommodities Focus

ratings:
Length:
15 minutes
Released:
Aug 23, 2023
Format:
Podcast episode

Description

US Henry Hub natural gas prices have averaged just $2.43/MMBtu this year, pushing many producers close to, or even below, their breakeven price. Mild weather and weak gas demand this past winter were largely to blame, triggering a selloff that dropped gas prices from historic highs. US gas producers were slow to respond to the selloff, however, and only recently cut rigs, slowed new well starts and dialed back completions. At over 102 Bcf/d, though, US gas production remains near record highs this summer. Will recent capex cuts be enough to balance the market? S&P Global Commodity Insights' J. Robinson, editorial lead for the Americas natural gas news team, sits down with Reed Olmstead, executive director of research and analysis for upstream, and Jeremy Beaman, editor for the American natural gas team, to discuss the outlook for US output as domestic operators readjust to leaner margins.  We want to hear about your podcast preferences so we can keep improving our shows. Take our podcast survey here and share your thoughts: https://www.surveylegend.com/s/4xyz
Released:
Aug 23, 2023
Format:
Podcast episode

Titles in the series (100)

S&P Global Commodity Insights analysis of key news and pricing issues from across the global shipping, natural gas, power, petrochemicals, agriculture, and coal markets.