The record breaking cold weather in much of the U.S. is chilling natural gas production in the country’s shale areas, with output down more than 20% since last month in North Dakota’s Bakken region, according to analyst estimates.
Flows of natural gas on interstate pipelines out of North Dakota dropped to ~1B cf/day today, down from ~1.3B cf/day on Dec. 25, Reuters reports, citing Genscape data, as temperatures plunged to as low as -45°F this morning.
Natural gas transport on interstate pipelines is down an estimated ~20% in Texas, ~22% in Oklahoma, and 5% in Pennsylvania’s Marcellus shale, according to Genscape.
Continental Resources (NYSE:CLR), North Dakota's second largest producer, declines to detail the effects of cold weather on its natural gas output but says it expects a decline; Hess (NYSE:HES) and Cabot Oil and Gas (NYSE:COG), two of the largest natural gas producers and processors in North Dakota and Pennsylvania, do not offer any comment.
Earlier: Natural gas jumps as U.S. temperatures plunge (Jan. 2)
Subscribe for full text news in your inbox