Americans continue to use more natural gas as the nation’s unconventional shale plays provide a larger share of domestic gas needs.

The U.S. Energy Information Administration’s newly released Natural Gas Annual pegged total U.S. gas consumption at 26.13 trillion cubic feet (Tcf) during 2013, a 2.3% increase from the prior year—but a sharp 14% increase from just four years earlier in 2009.

“Total U.S. natural gas gross withdrawals reached a new high at 82 billion cubic feet per day (Bcf/d) in 2013, with shale gas wells becoming the largest source of total natural gas production” for the first time, the agency reported.

Production from shale wells averaged 33 Bcf/d for the year, the EIA said. In comparison, U.S. shale wells produced only 5 Bcf/d in 2007 at the start of the energy industry’s run-up in shale drilling and development. Shale wells produced a total of 11.9 Tcf of gas in 2013, compared with 11.3 Tcf from conventional wells. Associated gas produced by oil wells totaled 5.4 Tcf, up from 4.96 Tcf in 2012, while coalbed methane production continued a long-term decline to 1.4 Tcf, down 7.4% for the year.

“In 2007, shale gas wells made up 8% of total natural gas produced in the United States, with 63% of shale gas production coming from Texas,” the EIA added. “Since then, the distribution of shale gas production by state has changed significantly in the United States, especially in Texas, Pennsylvania, Louisiana, and Arkansas. These states accounted for 26 Bcf/d, or 79%, of U.S shale production in 2013.”

The number of gas-producing wells at yearend 2013 stood at 487,286, up from 482,822 as 2012 ended but down from 493,100 wells at yearend 2009.

With a burgeoning supply of domestic gas production, the EIA found gas imports dropped 8% in 2013 from the prior year. Exports declined 2.9% from 2012.

Residential, commercial, industrial and vehicle fuel use all increased while the volume of gas used for power generation declined by 10.5% from 2012. However, gas use was higher compared to annual power-generation consumption for 2009-2011.

The average gas price for residential customers in 2013 declined 33 cents per thousand cubic feet (Mcf) to $10.32/Mcf. Commercial customers saw a 2 cent/Mcf drop while prices rose for industrial, power generation and vehicle fuel customers.

The number of gas customers continued to climb in all of EIA’s categories. At yearend 2013, there were 66.7 million residential gas customers, a 0.5% increase from the prior year. The number of commercial and industrial customers also rose slightly, year over year.

“Natural gas gross withdrawals are a measure of full well stream production, including all natural gas plant liquids and non-hydrocarbon gases after oil, lease condensate, and water have been removed,” the EIA noted in the report.

Comments