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| Average Wellhead Value |
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Average Wellhead Value, Annual Data: Form EIA-895A, "Annual Quantity and Value of Natural Gas Report,"
requests state agencies to report the quantity and value of marketed production. When
complete data are unavailable, the form instructs the state agency to report the available
value and the quantity of marketed production associated with this value. A number of states
reported volumes of production and associated values for other than marketed production.
In addition, information for several states which were unable to provide data was obtained
from Form EIA-176. It should be noted that Form EIA-176
reports a fraction of state production. The imputed value of marketed production in each
state is calculated by dividing the state's reported value by its associated production.
This unit price is then applied to the quantity of the state's marketed production to derive
the imputed value of marketed production.
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Average Wellhead Value, Preliminary Monthly Data: Preliminary values for the monthly U.S. natural gas wellhead price are estimated from the
New York Mercantile Exchange (NYMEX) futures closing price for near-month delivery at the
Henry Hub, and prevailing cash market prices (spot prices) at 5 major trading hubs:
Henry Hub, LA; Carthage, TX; Katy, TX; Waha, TX; and Blanco, NM. The NYMEX price is
reported in the trade publication, Gas Daily (published by Financial Times Energy).
The spot prices are published in another trade publication,
Natural Gas Week (Energy Intelligence Group), and they reflect the spot
delivered-to-pipeline, volume-weighted average prices for natural gas bought and sold at
the specified trading hubs. Prices include processing, gathering, and transportation fees
to the hubs. The estimated wellhead prices are derived with a statistical procedure based
on analysis of monthly time series data for the period 1995 through the present. A
statistical procedure was adopted beginning with publication of the February 1999 issue
of the Natural Gas Monthly. The preliminary estimates are replaced when annual survey
data become available, usually about 10 months after the end of the report year.
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Average Wellhead Value, Final Monthly Data: The Form EIA-895A requests state agencies to report monthly values of marketed production.
Preliminary monthly gas price data are replaced by these final monthly data.
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Average wellhead price times marketed production does not equal imputed
value of marketed production due to independent rounding.
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| Marketed Production |
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Natural gas production annual data are collected from 33 gas-producing states on Form EIA-895A
which includes gross withdrawals, vented and flared, repressuring, nonhydrocarbon gases
removed, fuel used on leases, marketed production (wet), and extraction loss.
The U.S. Minerals Management Service (MMS) also supplies data on the quantity and
value of natural gas production on the Gulf of Mexico and Outer Continental Shelf. No
adjustments are made to the data.
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Average wellhead prices are calculated from volumes and values reported in Part IV of
the Form EIA-895A. These data are shown as "Reported Wellhead Value".
The volumes in this section refer to the actual amounts of natural gas reported to the states as sold.
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In many states, the marketed production volumes are larger than the reported wellhead
value volumes. Differences in these volumes generally result from differences in
definition and reporting requirements for separate data systems in the state. For
example, while production quantities of federal, tribal, and state royalty gas are
included in marketed production, some state reporting rules exclude these quantities
from reported wellhead value volumes.
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All monthly data are considered preliminary until after publication of the
Natural Gas Annual for the year in which the report month falls. Preliminary monthly data
are published from reports from the
Form EIA-914, "Monthly Natural Gas Production Report".
Volumetric data are converted, as necessary, to a standard 14.73 psia pressure base.
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Final monthly data are the sums of monthly data reported on the Form EIA-895A annual schedule.
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