The United States could see increased upward pressure on natural gas prices compared with last winter, as cold weather and surging demand threaten to offset production gains, according to the National Gas Supply Association’s (NGSA) Winter Outlook.

In the forecast presented Wednesday, NGSA Chairman David Attwood, who is an ExxonMobil vice president, touted the “comeback story of U.S. natural gas production.” 

winter gas graph

Boosted by an increase in active gas rigs and dwindling drilled but uncompleted (DUC) wells, especially in the Permian Basin, NGSA assumes gas production will be 4% higher year/year when colder temperatures settle in at the start of November. It could be a 7% increase over 2020.

“The outlook shows producers are rising to the challenge of strong winter demand for...