US gas output hits record in September: EIA

US natural gas production hit a record high in September as higher energy prices supported drilling.

Gross gas output from the Lower-48 US states, which includes volumes lost in processing and production, reached 111.2 Bcf/d (3.2bn m³/d) in September, up by 0.7pc from August and 6.1pc higher than a year earlier, the US Energy Information Administration (EIA) said today in its monthly report on gas production. Output has increased for seven consecutive months ended September, increasing by 6.2pc during that period.

US gas production has increased in the past year as producers ramped up production to meet higher demand in the US power sector and for exports to international markets. Spot prices at the Henry Hub in September averaged $7.82/mmBtu, 52pc higher than a year earlier. The US gas rig count in September was 62pc higher than a year earlier, while the overall US rig count, including oil and gas rigs, was 48pc higher, according to oil field services provider Baker Hughes.

Gas output from Texas, the largest producing state by volume, increased slightly in September, rising to 31.2 Bcf/d, or 2.9pc higher than a year earlier. Output in Texas has been buoyed as producers continue to develop the oil-rich Permian basin in the western portion of the state and the Eagle Ford shale in south Texas. Permian oil wells can produce large volumes of associated gas.

New Mexico gas output also increased in September to 7.9 Bcf/d, 4.2pc higher than a month earlier and 20pc higher than a year earlier. The Permian basin extends through southeastern New Mexico.

Production from the Appalachian region — which includes output from Pennsylvania, West Virginia and Ohio — rose marginally in September to nearly 35 Bcf/d, 2.6pc higher than a year earlier. Appalachia is home to the prolific Marcellus and Utica shale gas fields. Output from the region has increased slowly this year as rising production strains pipeline takeaway capacity.

Gas output from Louisiana, which sits atop a large swath of the Haynesville shale, rose in September to 11.5 Bcf/d, 0.7pc higher than a month earlier and a year-over-year increase of 19pc. Output from the Haynesville has surged in the past year because the field is close to US LNG export terminals and other gas buyers along the US Gulf coast.

By Jason Womack