The US Energy Information Administration (EIA) said US natural gas production and demand will drop in 2020 and 2021 from record highs last year as government steps to slow the spread of coronavirus cut economic activity and energy prices.
From the all-time high of 92.21 bcfd in 2019, the EIA projected dry gas production will drop to 89.24 bcfd in 2020 and 84.23 bcfd in 2021. From a record 84.97 bcfd in 2019, it also projected gas consumption would fall to 82.35 bcfd in 2020 and 78.62 bcfd in 2021. The EIA’s gas supply projection for 2020 in July was lower than its June forecast of 89.65 bcfd, while its latest demand outlook for 2020 was higher than its June forecast of 81.87 bcfd.
The agency forecast US liquefied natural gas exports would reach 5.35 bcfd in 2020 and 7.28 bcfd in 2021, up from a record 4.98 bcfd in 2019. US coal production is expected to fall 29 percent to 501 million short tons in 2020, before rising to 536 million short tons in 2021.
