Defeating The Demons Of Demand

Despite mixed fundamental data, EIR remains bullish, forecasting U.S. oil production growth near 1 MMbbl/d in 2023

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest quarterly FundamentalEdge report focused on global drivers for oil and gas prices to 2030, the five-year oil and gas supply and demand outlook, and price forecasts.

“We believe Henry Hub gas prices are rangebound for the next two years at $2.50-$3.00/MMBtu (summer) and $3-$3.50/MMBtu (winter) because of our views on breakeven economics,” said Chetan Sharma, senior associate at EIR.

“EIR forecasts global oil demand will rise 1.8 MMbbl/d in 2023 mainly because of increased Chinese and Indian consumption,” Sharma said.

Key takeaways:

• EIR remains bullish oil despite the mixed fundamental data, forecasting U.S. oil production will grow just under 1 MMbbl/d in 2023.
• New LNG export capacity is needed to provide the structural shift that leads to higher NYMEX prices in 2025+.
• EIR forecasts moderate L48 dry gas production growth until 2025 when demand from LNG export facilities picks up, and EIR predicts this demand will be fed by higher production from the Haynesville play.

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About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser.