Plunging Haynesville Production Leads Overall Natural Gas Supply Cut; Price Response Muted

Plunging Haynesville Production Leads Overall Natural Gas Supply Cut; Price Response Muted

 

By Kevin Dobbs April 26, 2024 naturalgasintel.com

Natural gas exploration and production (E&P) companies in the Haynesville Shale continue to drive overall cuts to Lower 48 supply. Output there is down nearly 20% from a year earlier and continues to slide following well-telegraphed efforts to slow activity and balance an oversupplied market.

Prices, however, have yet to respond, given a substantial supply overhang. Natural gas in storage remained lofty relative to historical norms following a winter in which seasonally mild weather sapped heating demand. Weak consumption during the winter months intersected with production that reached record levels around 107 Bcf/d at multiple points – before the E&P pullback commenced in February and March. 

Total output has since dipped to about 100 Bcf/d, and at times in recent weeks, it...

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