Utilities

<p style="text-align: justify;">Rystad Energy's analysis demonstrates that, US natural gas production is expected to hit a record high of more than 100 bcfd by the end of the year. &nbsp;</p><p style="text-align: justify;">Production growth in major US gas-producing basins and associated gas production in the Permian will cement the country's position as the world's largest gas producer, stretching its lead over Russia.</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">US Natural Gas Production to Hit a Record High</span></h2><p style="text-align: justify;">Within shale gas players, the Marcellus, Utica, and Haynesville are set to contribute the most. Rystad Energy expects production from Haynesville alone to grow by 2.6 bcfd this year compared with 2021, pushing annual output to more than 14 bcfd. Production from the basin is forecast to jump next year as well, reaching 17.2 bcfd by the end of 2023.</p><p style="text-align: justify;">The company noted, however, that growth in the Appalachia basin remains entirely dependent on the progress of the proposed Mountain Valley Pipeline, which faces significant legal hurdles.&nbsp;</p><p style="text-align: justify;">The recent surge in global natural gas prices pushes US exploration and production companies to increase investment to take advantage of competitive breakeven costs.</p><p style="text-align: justify;">A well-documented supply shortage in Europe is pushing up prices on the continent amid efforts to ease reliance on Russian gas. Given the wide US and European price differences, shipping US gas across the Atlantic, even considering the expensive liquefaction process, is economically advantageous.</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/stevefriedewald/">Stephen Friedewald</a>.&nbsp;</em></span></p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Stephen Friedewald&nbsp;</span></h3><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. What is the outlook for natural gas in 2022?</span></h2><p style="text-align: justify;">The U.S. dry natural gas production will grow by 2022 but less than demand. We expect dry natural gas generation to average 96.5 Bcfd in 2022, 3.2 percent (or 3.0 Bcfd) higher than the 2021 average.</p><p style="text-align: justify;">With natural gas demand surpassing production, natural gas inventories remained low.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What is the outlook for natural gas?</span></h2><p style="text-align: justify;">U.S. natural gas is not a broken market but has become the world's most significant and competitive natural gas market.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. Which is the largest shale gas product-producing country in the world?</span></h2><p style="text-align: justify;">The United States is far and away the most dominant shale gas producer in the world. Canada also is a leading producer. Few other countries produce shale gas at scale other than Argentina and China.</p><p style="text-align: justify;">&nbsp;</p>