Rise

In its first forecast for 2014, the Energy Information Administration (EIA) said it expects natural gas prices to “gradually rise but still remain relatively low” over the next 24 months, with Henry Hub prices averaging $3.74/MMBtu this year and $3.90/MMBtu in 2014, compared with $2.75/MMBtu in 2012.

Due to the rapid rise in the development of unconventionals, natural gas surpassed coal as the most-produced domestic fuel in 2011, the Energy Information Administration (EIA) said. Gas production was 23.5 quadrillion Btu (quads) in 2011 compared to coal’s 22.2 quads. Gas accounted for nearly 39% of the 60.6 quads of domestic fossil fuel produced in 2011, which exceeded the previous record of 59.3 quads in 1998. One quad is equal to about 1 Tcf of natural gas. Crude oil production, which experienced a long decline from 20.4 quads in 1970 to 10.5 quads in 2008, rose to almost 12 quads in 2011, the EIA said. Natural gas liquids (NGL) climbed to their highest level, 2.9 quads in 2011. Overall in 2011, the United States produced about 78 quads of energy, more than at any point in the nation’s history. More than three-quarters of the energy production came from nonrenewable fossil fuels: coal, natural gas, crude oil and NGLs. But despite rising production, the agency said the United States remained a net energy importer, consuming more than 97 quads of energy in 2011.

Due to the rapid rise in the development of shale gas, natural gas surpassed coal as the most-produced domestic fuel in 2011, the Energy Information Administration (EIA) said Thursday.

Demand for natural gas and oil infrastructure equipment is on track to rise 6.3% a year between now and 2016 when it will total $12.1 billion, according to a report by industry market researcher The Freedonia Group Inc.

A comeback for coal in the power generation space could come next year on the expected rise in demand for electricity and corresponding increases in natural gas prices to more normal levels, according to global coal mining equipment supplier Joy Global Inc.

U.S. natural gas well completions plunged by an estimated 24% from April through June, while oil well completions continued to steadily rise, according to the latest statistics from the American Petroleum Institute (API).

The costs to build and operate upstream natural gas and oil facilities appear to be escalating and should continue to rise, driven by increased costs in drilling rig dayrates, equipment and oilfield services, according to IHS Inc.

Continuing its basement-to-the-penthouse rise in the energy sector, North Dakota’s latest oil/gas production statistics make the state that had no drilling rigs operating in 1999 now the second biggest oil producer in the nation, trailing only Texas.

A sample of 20 of North America’s top natural gas explorers indicates that 2012 output will continue to rise, despite low prices, according to Barclays Capital energy analysts.