Lower 48 production has started to drop from the strong levels seen in late-November. So far the lower levels are coming mainly from the South Central region. The Northeast gas production remains strong, and so has production from regions that usually face freeze-offs. As domestic production has dropped, Canadian imports have picked up. This has kept overall supply levels flat.
Western Canada has had warm weather over the past couple of weeks leading to lower than normal natural gas consumption levels. Towards the end of this week, the cooler temps in WestCan should influence the Canadian import levels adding some tightness to the US gas balances.
Today’s Fundamentals
Daily US natural gas production is estimated to be 90.3 Bcf/d this morning. Today’s estimated production is -0.41 Bcf/d to yesterday, and -0.98 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 97.1 Bcf today, +0.99 Bcf/d to yesterday, and +0.07 Bcf/d to the 7D average. US power burns are expected to be 27.94 Bcf today, and US ResComm usage is expected to be 39.5 Bcf.
Net LNG deliveries are expected to be 11 Bcf today.
Mexican exports are expected to be 6.1 Bcf today, and net Canadian imports are expected to be 6.2 Bcf today.
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ION-Energy-Daily-Report-Dec-07-2020.pdf