L48 Production has ramped up considerably over the past few days. BNEF estimates show production reaching 89 Bcf/d with resumption of offshore production, and Northeast production ramping back up. We have noticed Northeast production being highly responsive to local demand and cash prices.
Production is roughly 8 Bcf/d lower than the average set last October. We can see most of the production came off the Gulf region and Midcon region. The Gulf lost roughly 4.5 Bcf/d compared to last Oct. The Rockies also lost 1.7 Bcf/d with losses coming from the DJ and Williston basins.
Today’s Fundamental’s
Daily US natural gas production is estimated to be 87.8 Bcf/d this morning. Today’s estimated production is -1.02 Bcf/d to yesterday, and -0.58 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 75.1 Bcf today, -1.58 Bcf/d to yesterday, and +1.02 Bcf/d to the 7D average. US power burns are expected to be 30.74 Bcf today, and US ResComm usage is expected to be 16.2 Bcf.
Net LNG deliveries are expected to be 8.5 Bcf today.
Mexican exports are expected to be 6.4 Bcf today, and net Canadian imports are expected to be 3.1 Bcf today.
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ION-Energy-Daily-Report-Oct-20-2020.pdf