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US natgas output to decline as need hits record high in 2024, EIA says

U.S. natural gas production will decline in 2024 while demand will increase to a record high, the U.S. Energy Information Administration said in its Short-term Energy Outlook on Wednesday.

The EIA predicted dry gas production will alleviate from a record 103.8 billion cubic feet each day in 2023 to 103.3 bcfd in 2024 as several producers decrease drilling activities this year after average monthly spot gas rates at the Henry Center benchmark << NG-W-HH-SNL > was up to a 32-year low in March.

In 2025, EIA projected output would rise to 104.5 bcfd.

The agency also predicted domestic gas intake would increase from a record 89.1 bcfd in 2023 to 90.0 bcfd in 2024 in the past reducing back to 89.6 bcfd in 2025.

If the projections are proper, 2024 would be the first time output decreases considering that 2020, when the COVID-19 pandemic cut need for the fuel. It would also be the very first time need increases for four years in a row because 2016.

The latest forecasts for 2024 were lower than EIA's. forecasts in October of 103.5 bcfd for supply and 90.1 bcfd for. usage.

The company anticipated average U.S. liquefied gas (LNG). exports would reach 12.1 bcfd in 2024 and 13.8 bcfd in 2025, up. from a record 11.9 bcfd in 2023.

The firm forecasted U.S. coal production would fall from. 578.0 million short loads in 2023 to 504.7 million loads in 2024,. which would be the lowest level considering that 1964, and 469.1 million. lots in 2025, which would be the lowest considering that 1962, as gas and. sustainable sources of power displace coal-fired plants.

EIA forecasted co2 (CO2) emissions from fossil. fuels would relieve from 4.787 billion metric loads in 2023 to 4.768. billion metric heaps in 2024 as coal use reduces, before edging. approximately 4.774 billion metric loads in 2025 as petroleum use. boosts.

That compares to carbon emissions of 4.585 billion metric. heaps in 2020, the most affordable level since 1983, when the pandemic. sapped need for energy.

(source: Reuters)