All U.S. gas indicators up

U.S. consumption of natural gas in 1996 reached record levels in residential and industrial end-use sectors, the Energy Information Administration said. It said the 5.2 tcf of residential use and 8.9 tcf of industrial use surpassed records set in the early 1970s. Also, nearly 1 million new residential customers were added in 1996. The U.S. used 22 tcf last year, due partly to "major regulatory and legislative initiatives to expand access to gas that began in the mid-1980s and reversed previous

Oct. 6, 1997

2 min read

U.S. consumption of natural gas in 1996 reached record levels in residential and industrial end-use sectors, the Energy Information Administration said.

It said the 5.2 tcf of residential use and 8.9 tcf of industrial use surpassed records set in the early 1970s. Also, nearly 1 million new residential customers were added in 1996.

The U.S. used 22 tcf last year, due partly to "major regulatory and legislative initiatives to expand access to gas that began in the mid-1980s and reversed previous policies that discouraged the use of gas."

The price of gas at the wellhead jumped 40% to $2.17/Mcf from $1.55 in 1995. In 1996, residential users paid an average $6.34/Mcf, commercial users $5.40, industrial users $3.42, and electric utilities $2.69.

Marketed production of gas climbed to 19.8 tcf in 1996. Production from the Gulf of Mexico rose 3.2%, or 323 bcf, with increases in Arkansas and Colorado more than offsetting declines in onshore Louisiana, New Mexico, and Oklahoma. It said, "The trend for increasing gas production from the Gulf of Mexico is expected to continue during the next few years. The extension of recovery opportunities into deep water has established the deep offshore as an important area for future production."

EIA said gas production in 1996 was at its highest level since 1981, and despite relatively large volumes, reserve additions were more than adequate to replace the produced gas. Gas reserves rose for the third year in a row, for the first sustained increase since 1967.