US natural gas production increased 4.3 Bcf/day, or 7.5%, last year compared to 2010, marking the largest year-on-year production increase over the past 25 years, thanks largely to Marcellus Shale production, a report from Bentek Energy stated Tuesday.
Demand, in contrast, has severely lagged. Gas consumption for power generation, for instance, only ticked up 600,000 Mcf/d in 2011 compared to 2010. So far this year, however, gas-fired generation has seen an increase of 3.8 Bcf/d on average, or 22% more than 2011, because of low gas prices.
It is in the Northeast that production has seen its most rampant growth, reaching 7 Bcf/d by the end of 2011 compared to 4 Bcf/d at the end of 2010.
"This growth is exclusively from the Marcellus, mostly in Pennsylvania and West Virginia," the report stated.
To access a complete copy of this report, please visit www.platts.com