US gas production flat in 2Q, expected to drop by yearend

Second quarter natural gas production estimates for the US range from a 0.1% increase to a 0.2% sequential decrease, compared with a 2.9% sequential decline in the first quarter from fourth quarter 2001, according to a Lehman Bros. survey result reported July 31.

By OGJ editors

HOUSTON, Aug. 5 -- Second quarter US natural gas production estimates range from a 0.1% increase to a 0.2% sequential decrease.

That compares with a 2.9% sequential decline in the first quarter from fourth quarter 2001, according to a Lehman Bros. survey result reported July 31.

The result is down from what analysts with the investment bank forecast July 26: a 0.2-0.8% increase over the first quarter.

Lehman Bros. analyst Thomas Driscoll said that 28 companies, which account for 45% of US gas production, responded to the second quarter survey, reporting the 0.2% decrease over first quarter production and a 6.4% decline over year-ago levels.

"We are maintaining our forecast for a 4.5-5.25% decline in US production in 2002," Driscoll said.

That forecast would be based on results reported from the company's survey of 45 companies, which would account for roughly 70% of US gas production.

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