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2024 NG PRODUCTION FREEZE-OFFS UPDATE PART 2

Written by jeremy | Jan 7, 2024 10:15:31 PM



As stated in the prior freeze-off update from last week, the Lower 48 US natural gas production freeze-off situation is dynamic and volatile due to the extreme volatility of the weather forecasts in January and February.  Last week, the weather forecasts in the cities associated with the major natural gas producing basins had indicated no production freeze-offs out until January 18th, except for the state of North Dakota.  Looking at the 1–15-day weather forecasts on January 7th now indicate some additional freeze-offs are likely in 3 other regions besides North Dakota.  The Northeast, Oklahoma, and Colorado now indicate natural gas production freeze-off potential.  Additionally, the weather forecasts turned colder in North Dakota, signaling additional production freeze-offs for a longer period.  The table below summarizes the total Lower 48 production freeze-offs by region.



Summary

Natural gas production freeze-offs are now likely for the Northeast, Oklahoma, and Colorado in addition to North Dakota.  Total Lower 48 natural gas production freeze-offs are now estimated to be 25.5 Bcf for January-2024.  The prior forecast released last week had a Lower 48 total of 6.4 Bcf of natural gas production freeze-offs for January-2024, which had only included North Dakota.  Stay tuned for the next production freeze-off update likely to be released tomorrow!