The US government’s short-term energy report for May forecasts falling first-half 2024 dry natural gas production while liquefied natural gas exports are set to rise in 2025, along with the benchmark Henry Hub gas price.

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The United States forecasts that the nation’s natural gas supply will increase to meet growing demand for domestic pipeline gas and liquefied natural gas exports, though benchmark Henry Hub prices are expected to remain subdued as US oil and gas production increases to new record levels.

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Energy consumption will increase in the United States over the next 30 years across a variety of economic scenarios as population and economic growth outpace energy efficiency gains, though natural gas and LNG will retain their starring roles.

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The US Government forecasts that natural gas prices will remain high in the coming months because of a combination of more demand, lower short-term domestic natural gas production and the effects of Hurricane Ida on Gulf of Mexico output.

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Cargoes of liquefied natural gas were still the subject of high prices in North Asia and Europe as the Japan-Korea Marker for spot cargoes hit the $10 per million British thermal units mark while European benchmark LNG values increased to their highest in 2021.

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Demand for liquefied natural gas cargoes continued at a high seasonal level as liftings increase this week along with prices at all points, including North Asia spot volumes, Indian delivered cargoes, US Gulf Coast futures and Dutch and UK European gas values.

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The US Department of Energy’s Office of Fossil Energy has delivered a new report on likely impacts of the “ill-conceived” ban on hydraulic fracturing proposed by the incoming Administration that would cost millions of jobs and make gasoline and electricity prices much higher for all Americans while risking a recession.

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Oil prices fell below $40 per barrel as street unrest in cities like Seattle led to concerns about US stability and the pace of the US economic recovery, while the nation’s LNG exports dropped to half of the previous week’s level, offset by pipeline natural gas exports to Mexico jumping more than 8 percent.

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