Highlights

Continued growth in production, relatively low prices, and expanded electric power sector use characterized U.S. natural gas markets in 2011. Key observations for the year include:

• Henry Hub spot prices fell from an average of $4.37 per million British thermal units (MMBtu) in 2010 to $3.98 per MMBtu in 2011.
• Marketed production grew 7.9 percent, from 61.4 billion cubic feet per day (Bcf/d) in 2010 to 66.2 Bcf/d in 2011. This was the largest year-over-year change since 1984, despite falling rig counts in 2011.
• Consumption rose from 65.1 Bcf/d in 2010 to 66.8 Bcf/d in 2011, with the electric power and industrial sectors showing strong growth.
• U.S. inventories of working natural gas in storage hit new records in 2011. Inventories reached a weekly record of 3,852 Bcf the week ending November 18, 2011.
• Net imports posted a steep decline in 2011, from 7.1 Bcf/d the previous year to 5.3 Bcf/d, and were at the lowest levels since 1992.

Table 1. Natural gas supply and disposition (Bcf/d)

	2009	2010	2011	2010-2011 Change	Percent Change
Supply
Marketed Production	59.3	61.4	66.2	4.8	7.9%
Federal Gulf of Mexico	6.7	6.2	5.0	-1.2	-19.0%
Lower-48 States	51.3	53.9	60.2	6.3	11.7%
Gross Imports	10.3	10.2	9.5	-0.8	-7.5%
Storage Withdrawals	8.1	9.0	8.7	-0.3	-3.0%
Disposition
Consumption	62.8	65.1	66.8	1.6	2.5%
Gross Exports	2.9	3.1	4.1	1.0	32.6%
Storage Injections	9.1	9.0	9.7	0.6	7.0%
Source: U.S. Energy Information Administration, Natural Gas Monthly.