US gas market: production cuts amid falling prices

American natural gas companies are preparing to reduce production in the second half of 2024 amid a sharp drop in prices. Over the past two months, Henry Ha gas prices have fallen by almost 40%, reaching about $2 per million British thermal units.

The drop in prices is due to lower demand caused by lower-than-expected temperatures and increased supplies, which some companies increased at the beginning of the second quarter after prices rose by 47% in April and May. 

In response to the current situation, a number of large companies have announced plans to reduce production. EQT and Apache have decided to reduce production by 2.5 million cubic meters per day, and Chesapeake Energy, Antero Resources Corp and EGO Resources will postpone the completion of some wells until the gas market recovers. 

Experts believe that companies have made the right choice by postponing the completion of wells, as this may support gas prices when demand for LNG increases. Coterra Energy, a shale oil company, cancelled some cuts at the end of the second quarter, but is preparing for further cuts in the off-season. 

In general, natural gas production in the United States this year will amount to about 2.92 billion cubic meters per day, which is comparable to the volume of production last year.