U.S. natural gas output setting records

HOUSTON, July 8 (UPI) -- June was a banner month for U.S. natural gas production from the Lower 48 states, a forecasting unit of Platts reported.

June natural gas production was up 0.3 percent from May to a total 68.1 billion cubic feet per day, the highest monthly production average on record. Data from Bentek Energy, the forecasting unit of Platts, show June's average was 5.4 percent higher year-on-year and any records set for June should be broken at some point this month.

The forecast says the economics of production in some of the shale basins in the United States should translate to a yearly production average of approximately 67.5 billion cubic feet per day.

In 2009, Bentek said the United States averaged 55.1 billion cubic feet per day in natural gas production. Most of the gains have come from the Eagle Ford shale play in the southern United States and other basins like Bakken, Permian and Marcellus.

"While the pace of production gains slowed slightly this month, the magnitude of the overall increase in domestic natural gas production is remarkable," said Jack Weixel, Bentek director of energy analysis, said in a statement.