According to a Rystad Energy report, natural gas output in the United States will reach a new high of 93.3 billion cubic feet per day (Bcfd) in 2022 and will continue to increase, surpassing 100 Bcfd in 2024. As a result, investors and markets will be more interested in the output of the country’s main gas basins, with CO2 emissions intensity, capital efficiency, and possible bottlenecks all being closely scrutinised.
The country’s performance hit a new high of 92.1 Bcfd in 2019, but production fell to 90.8 Bcfd in 2020 as a result of the Covid-19 pandemic. Rystad Energy says, volumes will drop even further in 2021, to 89.7 Bcfd. However, the trend will rapidly reverse as the pandemic’s impact fades and production picks up across the country’s major gas basins.
In terms of CO2 emissions intensity, the Appalachian region is the highest in the US, with 7.1 kg of CO2 per barrel of oil equivalent (boe) in 2020. Thanks to well-established, relatively modern infrastructure and widespread adoption of e-frac fleets.Emily McClain, Senior Analyst at Rystad Energy said, “Such a level of CO2 intensity performance brings Appalachia to the top quartile among all oil and gas fields globally. As the basin becomes more mature and modern ESG best practices are implemented, we anticipate Appalachia to improve further in its CO2 intensity dimension in the next three to four years.”