At the same time another shift in the continuing changing dynamic of the US energy space is the fact that the US is now producing more natural gas than it ever has before. The Energy Information Agency reported that natural gas production in the lower 48 U.S. states increased by 1.1%, or 0.72 billion cubic feet per day in September from August to a fresh record of 70.4 bcf/d. Dow Jones points out that, "the rise came despite a month-to-month drop of 13.5% in output from the federal Offshore Gulf of Mexico ‘largely as a result of Tropical Storm Lee,’ the EIA said. Offshore Gulf output was 4.17 bcf/day, down from 4.82 bcf/day in August and down from 5.93 bcf/day in September 2010."
The Energy Information Agency also pointed out that US gasoline demand hit the lowest level since 2001. Another reason we can export more stuff to other places.
The International Energy Agency Executive Director, Maria van der Hoeven said, "Current oil prices are high and the crude markets are tight, and if prices continue at current level they will have an impact on emerging markets. Dow Jones quotes him as saying, "Oil prices are still quite high and we've said before that if oil prices are high at this level for a longer period it will have an impact on economic recovery, especially for developing countries," she said. Dow says that, "Van der Hoeven declined to give a range for an oil price which would suits both consumers and producers or say whether she thought OPEC needed to raise output at its oil production meeting. Earlier this month, the Paris-based energy watchdog revised its forecast for global oil demand down by 70,000 barrels a day for 2011 and 20,000 barrels a day for 2012, another reason for forecast downgrades."
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at email@example.com.