We take a look at the latest natural gas supply and demand figures from the EIA.
U.S. natural gas production climbed to a record 76.68 billion cubic feet per day in March, according to the latest data from the Energy Information Administration. That’s up a notable 4.34 bcf/d, or 6 percent from a year ago. Excluding declining Gulf of Mexico production, output totaled 73.44 bcf/d, up nearly 5 bcf/d, or 7.2 percent from last year.
The massive increase in natural gas production is the sole reason prices haven’t rallied even more from here. Inventories are at extremely low levels following the brutal 2013/2014 winter, and this production surge has been the saving grace.
While output has been rising rapidly, the demand side of the natural gas market hasn’t been nearly as robust as bulls would like it. According to the EIA, industrial production was up 0.81 bcf/d year-over-year in March—a solid figure but not stellar by any means.