EIA reported that energy prices going up in 2010:

• Natural gas prices are expected to rise through 2011, the US EIA said in its short-term energy outlook on 12-Jan as a steady economic recovery in the US is expected to fuel a rise in demand in 2010 and 2011.

• Due to the expected declines in gas production and imports this year, the US EIA increased its first-quarter Henry Hub spot price forecast by 21%, to $5.56/MCF. EIA predicted a full-year 2010 average price of $5.36/MCF up 16%, from its previous outlook report published in December and $1.30/MCF higher than the 2009 average of $4.06/MCF. The agency said it expects gas prices to continue rising in 2011, averaging $6.12/MCF.

• US gas production rose 3.7% in 2009 despite a 59% downturn in the working gas rig count from September 2008 to July 2009, EIA said. It attributed the modest growth to the enhanced productivity of new wells in unconventional plays—but it predicted steep declines from initial levels at those same wells, which should contribute to a 3% drop in overall 2010 production.

• Gas consumption is predicted to be almost unchanged this year, the US EIA said. “Higher natural gas prices in 2010 are expected to cause a 2.8% decline in gas consumption in the electric power sector in 2010, which will offset growth in the residential, commercial and industrial sectors,” The US EIA added.  The weak economy cut gas use by 1.5% in 2009, however, the agency predicts that gas demand will remain nearly steady through 2011, when it is expected to rise just 0.4%.

On 10 Feb. 2010, the US EIA predicted that LNG imports in 2010 as a whole are expected to rise versus 2009, as production comes online in Russia, Indonesia, Yemen and Qatar. However, imports are seen falling in 2011 as demand in Europe and Asia picks up and helps suck some cargoes away from US market.

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