The U.S. Energy Information Agency’s (EIA) January 2019 Short-Term Energy Outlook (STEO) expects relatively stable Henry Hub natural gas prices and increasing natural gas production and exports through 2020.
According to the STEO, total U.S. natural gas consumption is expected to increase slightly through 2020, with increases in the electric and industrial sectors offsetting decreases in the residential and commercial sectors.
EIA expects the U.S. benchmark Henry Hub natural gas spot price to average US$2.89 per million British thermal units (MMBtu) in 2019 and $2.92/MMBtu in 2020, about 25 cents lower than the 2018 average of $3.15/MMBtu. Prices in the forecast are expected to be comparable with recent years as production growth largely keeps pace with demand and export growth.
EIA expects record-high dry U.S. natural gas production to continue to grow through 2020, from an estimated 83.3 billion cubic feet per day (Bcf/d) in 2018 to 90.2 Bcf/d in 2019 and 92.2 Bcf/d in 2020.