Natural gas production in the Lower 48 states, which in June had declined for the first time in 2010, increased 0.3% (0.17 Bcf/d) in July, according to the latest 914 production data released by the Energy Information Administration (EIA).

The EIA production report for July -- the latest month for which figures are available -- shows that gas output increased to 64.38 Bcf/d from 64.21 Bcf/d in June and was well above July 2009's level of 62.31 Bcf/d. EIA, which had previously reported 64.29 Bcf/d for June (see Daily GPI, Sept. 1) revised that figure downward by 0.08 Bcf/d to 64.21 Bcf/d, a 1.4% decline from May.

Total U.S. production -- Lower 48 states, Gulf of Mexico and Alaska -- fell 1.2% to 71.02 Bcf/d from 71.88 Bcf/d in the previous month, but it was still above the 70.21 Bcf/d production level that was reported in July 2009. Tropical storms, along with maintenance on wells, platforms and pipelines caused a 2% (0.12 Bcf/d) production decline in the federal offshore Gulf of Mexico in July -- the fifth consecutive monthly decline -- EIA said.

Production in Louisiana was unchanged at 6.13 Bcf/d in July after six consecutive months of increases and was considerably ahead of July 2009's level of 4.18 Bcf/d, according to EIA. New Mexico, which had seen production decline 4% in June, bounced back with a 5.2% increase to 3.82 Bcf/d in July "as planned maintenance was completed and issues with wells were resolved," EIA said.

Alaska output dropped 13.4% to 6.64 Bcf/d in July and lagged behind July 2009's 7.90 Bcf/d. Wyoming's production in July increased 0.8% to 6.58 Bcf/d from 6.53 Bcf/d in June. Oklahoma production in July fell 1% to 5 Bcf/d; Texas output increased 0.3% to 20.47 Bcf/d.

Gas production from other states, which EIA does not break out separately, was up 0.2% to 16.51 Bcf/d from June and was significantly above the 14.62 Bcf/d reported a year ago.

"Bears [will be] watching in coming months," according to Tudor, Pickering, Holt & Co. Securities Inc., which said gas markets are oversupplied, "but not way oversupplied."

©Copyright 2010 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.