US sets world record natural gas production as prices plunge

American Thinker ^ | 04/22/2019 | Chriss Street

[SeekAndFind]

U.S. natural gas production set an all-time world record last week despite prices hitting a new annual low and down 85 percent over the last 14 years.

After dominating world natural gas production for 50 years, American production peaked in 1972 at about 21.7 trillion cubic feet.  As annual production slumped to about 18 trillion cubic feet for the next 33 years, prices rose from about $0.59 per thousand cubic feet (tcf) to a record high of $18.95 per tcf in September 2005.

But thanks to 80-year-old George Mitchell, who pioneered modern hydraulic fracking techniques in the suburbs of Fort Worth in the late 1990s, U.S. natural gas production hit 100 million cubic feet per day last week, or an annual rate of 3.7 trillion cubic feet.  Through the magic of capitalism, prices plunged by $0.18 over the next four days to $2.56 per tcf on April 19.

U.S. natural gas proven recoverable reserves were last reported by the U.S. Energy Information Agency at a record 475 trillion cubic feet in 2017.  With U.S. consumption of 28 trillion cubic feet a year, that works out to about a 17-year supply. But the EIA estimated in its "Annual Energy Outlook 2019" that the technically recoverable resources of natural gas were about 2,459 trillion cubic feet, or about an 88-year supply.

America's only serious competitors for natural gas production are Russia at about 25 trillion cubic feet (tcf); Iran at 7.6 tcf; Canada at 6.5 tcf and Qatar at 6.3 tcf.

Although U.S. fracking volumes drove natural gas prices down, it also driven wellhead drilling costs down by about 40 percent and doubled the production per well. It also has kicked off a "digital energy" revolution in down-hole seismic testing

[Lurker]

Propane tank trade is is $17 where I live. It was $29 two years ago.

L

[gathersnomoss]

First In...
The “Obama” Recovery continues.........

[FLT-bird]

Drill baby drill!

[catnipman]

if/when the Dems ever take back power, you can rest assured that they’ll reduce production and get those prices right back up ...

[Leep]

He’s full of gas anyhow.

[The Iceman Cometh]

Seeing as this appears good for this nation, the Democrats are hard at work to attempt to put a stop to this.

[slumber1]

U.S. natural gas production set an all-time world record last week despite prices hitting a new annual low and down 85 percent over the last 14 years

Despite? Production rises and prices fall. It's almost like there's a connection or something

[Paladin2]

New York State is certainly not helping.

[KarlInOhio]

The propane tank trade in is still expensive where I live and they only fill to 15 lbs. It was cheaper for me to buy a second tank and have it filled at my convenience at a local propane depot. Also they fill to nearly 20 lbs. and do top offs if I’m having a big cookout and want two full tanks.

[Parley Baer]

President Trump, you magnificent bastard. You cannot tell me that his polices did not have an effect on these falling prices. GO TRUMP GO

[dhs12345]

Nice benefit is that our enemies, Russia, Iran, Venezuela, all are struggling because of the US’s increased energy production.

Something that Obama would have never done.

[gathersnomoss]

Imagine the $Billions that we could save if we could get bureaucracy reduced to a real minimum. “Snowball...meet hell”.

[BuffaloJack]

Drill ... Drill ... Drill ...
Frack ... Frack ... Frack ...
Go to the Bank ... Go to the Bank ... Go to the Bank ...

[Lurker]

“The propane tank trade in is still expensive where I live and they only fill to 15 lbs.”

My local vendor fills it to 20 for $16 last time I did it. I’ve got three 20 pound tanks and one 80 pound tank. I make it a point to trade them in once a year. That way I’ve always got “new” tanks.

I’m curious as to why it’s different in Ohio. Any thoughts?

L

[PGR88]

With such a huge supply of natural gas, the USA should also should become a world-leader in production and exports of down-stream products, such as plastic resins, petrochemicals and nitrogen fertilizer

Anyone in the field who can speak to that?

[Teacher317]

100 million cubic feet per day last week, or an annual rate of 3.7 trillion cubic feet.

Serious math error there... 100m x 365 = 37 trillion, not 3.7t... they should have caught it when noting that Russia is up around 25t.

[Army Air Corps]

Ping.

[eldoradude]

The author's numbers are wack.

U.S. natural gas production hit 100 million cubic feet per day last week, or an annual rate of 3.7 trillion cubic feet

Multiply 100 million by 365 days - 36.5 billion annually, not 3.7 trillion.

[KarlInOhio]

I think one company has taken over the trade in business at every store so everywhere has the same trade in price. Getting it pumped at the depot has dropped. I paid the $5 or $10 extra to get tanks with level gauges and I’m not trading those in.