Monday, September 16, 2013

Surprise Fact: EIA Projects Gas Consumption Will Be Lower In 2014 Than In 2012

EIA continues to predict that the US will use less natural gas in 2014 than it did in 2012.  Why? Gas used to make electricity is projected to decline sharply--down nearly 14%.  EIA says:

"U.S. Natural Gas Consumption.
EIA expects that natural gas consumption, which averaged 69.7
Bcf/d in 2012, will average 69.9 Bcf/d and 69.3 Bcf/d in 2013 and 2014, respectively. Colder
winter temperatures in 2013 and 2014 (compared with the record-warm temperatures in 2012)
are expected to increase the amount of natural gas used for residential and commercial space
heating. However, the projected year-over-year increases in natural gas prices contribute to
declines in natural gas used for electric power generation from 25.0 Bcf/d in 2012 to 22.1 Bcf/d
in 2013 and 21.6 Bcf/d in 2014."

More gas supply is not leading to more gas demand. That's a surprising fact, at least at this time.

1 comment:

  1. Chiming in a bit late here. It's important to note that much of the industry has turned from gas back to liquids since gas prices were so low, too low, for profitability. So it's not just about demand, it's about the industry self-adjusting to economic circumstances...