EIA released the November 2009 Natural Gas Monthly on Monday, November 30, which includes data for September 2009. Marketed production for the first three quarters of the year totaled 16,471 Bcf, according to the report. This compares to 15,870 Bcf for the first three quarters of 2008. Marketed production of natural gas dropped in September to 59 Bcf per day, a decrease of about 2 percent from August levels of 60 Bcf per day. However, production for the month of September was at its highest level since 1973. Additionally, marketed production was about 14 percent higher than the 5-year (2004-2008) average for September. Delivered volumes of natural gas fell by 7 percent to 47 Bcf per day from August to September, largely because of a significant decline in natural gas deliveries to electric power plants. Industrial consumption increased slightly from the previous month, while residential consumption increased almost 10 percent, which is consistent with the typical seasonal pattern. Despite month-to-month decreases, total consumption in September was about 4 percent above the 5-year average, likely as a result of long-term increases in use of natural gas for electric power generation. The average wellhead price in September was $2.92 per thousand cubic feet (Mcf), the lowest level since August 2002. The September 2009 price fell about 7 percent from August 2009 levels of $3.14 per Mcf. Additionally, the September 2009 price is almost 60 percent lower than September 2008 levels of $7.27 per Mcf.

Excerpted from The Natural Gas Weekly Update.