Lower 48 Natural Gas Output Drops Amid Pipeline Disruptions
What happened
Lower 48 natural gas output dropped to 110.7 bcfd in October, down from August and September highs. This reduction was attributed to pipeline disruptions, force majeure events, and hurricane-related shut-ins in Kentucky, Texas, and West Virginia. US natural gas futures fell to $3.15 per MMBtu on Tuesday, despite the supply reduction.
Why it matters
The decline in output occurred alongside weaker LNG activity and forecasts of above-average temperatures, which could delay the seasonal pickup in heating demand. While 25% of natural gas output remained shut in as of Monday, the overall impact on supply was limited, as offshore production accounted for only 2% of total marketed gas output.
Who's involved
- West VirginiaState experiencing pipeline disruptions and reduced gas output
- TexasState experiencing pipeline disruptions and reduced gas output
- KentuckyState experiencing pipeline disruptions and reduced gas output
- ExxonMobilMajor energy producer affected by falling gas futures prices
- Electric Reliability Council of TexasRegional transmission organization managing the Texas energy grid
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- West VirginiaSpeculative
The state might face changes in energy production costs due to pipeline disruptions.
- KentuckySpeculative
The state might face changes in energy production costs due to pipeline disruptions.
- ExxonMobilSpeculative
The company could see changes in revenue due to falling natural gas futures prices.
- Electric Reliability Council of TexasSpeculative
The regional transmission organization could face increased strain on the energy grid due to reduced Lower 48 output.
Keep exploring
The entities involved
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West Virginia
state of the United States of America
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Texas
state of the United States of America
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Kentucky
state of the United States of America