Natural gas deliveries to U.S. LNG export facilities set a record in first-half 2023

Natural gas deliveries by pipeline to U.S. liquefied natural gas (LNG) export facilities are called LNG feed gas. LNG feed gas averaged 12.8 billion cubic feet per day (Bcf/d) in the first six months of 2023, following the Freeport LNG terminal's return to service, according to data by S&P Global Commodity Insights. Over this period, LNG feed gas averaged 8%, or 1.0 Bcf/d, more than the 2022 annual average and 4%, or 0.5 Bcf/d, more than the same six-month period in 2022. More »

Cooling commercial buildings is six times more energy-intensive in hot climates than cold

The energy intensity for cooling commercial buildings in the United States depends on the climate the building is located in. Energy intensity in buildings is the energy consumed per square foot of floorspace. U.S. commercial buildings in hot or very hot climates, which are primarily in the southernmost parts of the country, were more than six times more energy-intensive for cooling (14.2 thousand British thermal units per square foot [MBtu/sf]) than buildings in cold or very cold climates (2.3 MBtu/sf), according to our latest Commercial Buildings Energy Consumption Survey (CBECS). More »

Texas power grid met record-breaking demand for electricity during recent heat wave

An extreme heat wave in late June and July led to record-breaking demand for electricity in Texas as homes and businesses turned up their air-conditioning, fans, and other cooling equipment to cope with the heat. Power plants in the Electric Reliability Council of Texas (ERCOT)—the grid operator for most of the state—increased output to meet elevated demand. More »

Refinery capacity increased slightly for the first time since the COVID-19 pandemic

U.S. refining capacity increased slightly for the first time since the COVID-19 pandemic, as of January 1, 2023, reversing two years of decline, according to our annual Refinery Capacity Report. Operable atmospheric crude oil distillation capacity, our primary measure of refinery capacity in the United States, totaled 18.1 million barrels per calendar day (b/cd), a 1% increase from 2022. More »

Natural gas prices fall in first half of 2023 amid record production and mild temperatures

The average monthly spot natural gas price at the U.S. benchmark Henry Hub fell 34%, or $1.12 per million British thermal units (MMBtu), to $2.18/MMBtu between January and June, according to data from Refinitiv Eikon. The Henry Hub price averaged $3.30/MMBtu in January on an inflation-adjusted basis and then dropped below $2.50/MMBtu starting in February. Relatively mild temperatures, record production, and higher-than-average inventories reduced natural gas prices. When adjusted for inflation, this year has seen the lowest average monthly Henry Hub price since June 2020. More »

EIA forecasts crude oil prices will increase through 2024 as demand rises above supply

We forecast higher crude oil prices in the second half of 2023 and into 2024 in our latest Short-Term Energy Outlook (STEO) because of moderate but persistent inventory drawdowns. Inventory drawdowns take place when demand for a commodity is greater than the supply of that commodity. We expect production cuts from OPEC members and forecast higher petroleum consumption will lead to an average inventory drawdown of 0.4 million barrels per day (b/d) between July 2023 and the end of 2024. More »

U.S. gasoline inventories are rising, driven by East Coast market dynamics

U.S. gasoline inventories have been rising following a low this year of 216 million barrels (8% below the previous five-year average) on May 26. East Coast (PADD 1) gasoline inventories account for most of the national inventory growth despite refinery unit outages that are limiting regional gasoline production. Relatively high gasoline prices on the East Coast and falling freight rates are driving U.S. imports from Europe, which is increasing regional inventories. More »

Natural gas storage injections exceed five-year average so far this summer

Working natural gas inventories totaled 2,930 billion cubic feet (Bcf) in the Lower 48 states as of July 7, according to our Weekly Natural Gas Storage Report. U.S. natural gas production has outpaced demand, resulting in more natural gas injected into storage midway through the 2023 refill season (April 1–October 31). Since April 1, net injections into natural gas storage have exceeded the five-year (2018–22) average by 6% (66 Bcf), and working natural gas inventories have reached 69% of working gas capacity so far this refill season. More »

As Texas wind and solar capacity increase, energy curtailments are also likely to rise

We project combined wind and solar generating capacity in Texas's power market will double by 2035, fueling a growing renewable share of total generation. However, without upgrades to the state's transmission system, wind and solar generation will increasingly be curtailed, according to our recent analysis, A Case Study of Transmission Limits on Renewables Growth in Texas. More »

Crude oil and natural gas proved reserves held by public companies fell slightly in 2022

International proved crude oil and natural gas reserves held by 187 publicly traded global exploration and production (E&P) companies declined by 5.6 billion barrels of oil equivalent (BOE) in 2022, or 2%, according to data from the companies' annual financial reports. In 2020, proved reserves held by these public companies had dropped by 9% due primarily to the economic effects of the COVID-19 pandemic, but in 2021, proved reserves increased by 9% from 2020. More »

Two counties in New Mexico account for 29% of Permian Basin crude oil production

In southeastern New Mexico, horizontal wells in the Lea and Eddy counties drove much of the recent growth in Permian Basin crude oil output. Output from horizontal wells in the two counties accounted for 29% of all crude oil production in the Permian in the first quarter of 2023, averaging 1.7 million barrels per day (b/d), according to data from Enverus. The Permian Basin is the largest oil-producing basin in the United States, spanning 66 counties in southeastern New Mexico and western Texas. More »