WASHINGTON (UrduPoint News / Sputnik – 08th July, 2020) US natural gas consumption is forecast to fall 3 percent this year from fewer drillings due to the coronavirus pandemic and demand could decline as much as 5 percent in 2021, the Energy Information Administration said in its July outlook.
“EIA expects US natural gas consumption will decline by 3% in 2020, ” the agency said in the report on Tuesday. “The main driver of the decline is lower consumption in the industrial sector because of COVID-19 mitigation efforts and related reductions in economic activity. Forecast US natural gas consumption declines by 5% in 2021 as a result of expected rising natural gas prices.”
“The rising prices will reduce the use of natural gas in the electric power sector, which will more than offset increases in natural gas consumption in the industrial, commercial, and residential sectors,” the agency said.
“This 3 percent decrease is the result of falling natural gas prices that caused a decline in drilling activity and production curtailments,” it said.