North American gas production to decline 1.5% in 2005: Lehman

North American gas production to decline 1.5% in 2005: Lehman

Washington (Platts)--27Jun2005


North American natural gas production showed a modest increase in the second
quarter when compared to the first quarter of 2005, but Lehman Brothers
analyst Thomas Driscoll said Monday he still believes gas supplied by North
American wells will decline 1.5% year-over-year in 2005 based on his survey of
60 gas producers that account for two-thirds of all domestic production. 

US production will drop 2.9% in 2005, Driscoll said, while Canada's production
should increase 1.4%. Driscoll noted that his 2.9% figure for US gas
production is an improvement over his bleaker 3.7% decline forecast in April.
Canadian production, which jumped 1.7% in the first quarter of this year
compared with 2004, leveled off with a modest 0.1% second-quarter increase
when compared to the same period a year ago. Increased use of Cove Point,
Maryland, and Elba Island, Georgia, liquefied natural gas terminals accounted
for a 20,000 Mcf/d, or 0.1%, increase in LNG imports versus the first quarter
and a 21,000 Mcf/d, or 0.1%, increase over the second quarter of last year.

This story was originally published in Platts Natural Gas Alert
http://www.naturalgasalert.platts.com

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