News Release

2023 Outlook: Oil to Rise, Gas to Drop

Near-term recession concerns and oil price weakness should not obscure a tight oil supply outlook that should spark $100/bbl oil in 2023. NYMEX natural gas meanwhile should dip into the $3.50s next summer.

byEnverus

Calgary, Alberta (December 6, 2022) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest Macro Forecaster, a report that looks at near-term oil and gas balances, recession risks, Russian-Ukraine war impacts, COVID-19 demand impacts in China and OPEC’s decisions on oil supply.

“U.S. oil supply has disappointed this year, forcing us to downgrade our growth expectations significantly. We now forecast U.S. supply growth of 560 Mbbl/d E/E in 2023,” said Bill Farren-Price, report author and a director at EIR.

“We forecast U.S. gas demand growth of 2 Bcf/d in 2023, down 2 Bcf/d versus 2022. Demand gains into 2023 will be limited after a record 32.9 Bcf/d of gas consumption for power in 2022,” Farren-Price said.

Key takeaways the report:

  • EIR expects near-term recession concerns and oil price weakness to not obscure a tight supply outlook for 2023, when we forecast Brent pinned above $100/bbl on the back of OPEC supply management and EU sanctions on Russian exports.
  • EIR forecasts NYMEX gas prices of $5.10/MMBtu this winter, falling to $3.50/MMBtu in summer 2023.
  • A full removal of COVID-19 restrictions in China is not expected. Measures may be relaxed, but the threat of fresh shutdowns will undermine Chinese business confidence and oil demand.
  • Haynesville gas production is expected to grow 1.5 Bcf/d E/E in 2022 and 0.2 Bcf/d E/E in 2023. The slowdown next year reflects limited takeaway capacity with the Gulf Run pipeline limited to 0.5 Bcf/d until Golden Pass starts up in 2Q24.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing, and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters.  Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.

Media Contact: Jon Haubert | 303.396.5996

Picture of Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

Enverus Press Release - Enverus EVOLVE - Creating the future of energy
News Release
ByEnverus

Following its EVOLVE 2024 conference, Enverus, the leading generative AI and energy-dedicated SaaS company, announced that it was releasing complimentary access to its new Enverus Instant Analyst™ technology to its Oil & Gas Research (OGR) and Energy Transition Research (ETR)...

Enverus Press Release - Load impact imminent: Data center growth at the mercy of power supply constraints
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, has released a collection of research focused on expected growth in data center capacity and associated power demand.

Enverus Intelligence Research (EIR) News Release - Electrifying the Permian
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, has released a report that quantifies the potential electrification of oil and gas assets in the Permian Basin based on operators' emissions reduction...

Enverus Intelligence Research Press Release - 2024 races to a record start with $51B in upstream M&A
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, is releasing its summary of 1Q24 upstream M&A activity. Following last year’s blockbuster $192 billion in U.S. upstream consolidation, 1Q24 would be on...

Enverus Media Advisory-Press Release - EIR’s Andy McConn testifies before Congress on navigating Gulf of Mexico’s offshore challenges
News Release
ByEnverus

Enverus, the leading generative AI and energy-dedicated SaaS company, announced today that Andy McConn, director and head of Commercial Intelligence at Enverus Intelligence Research (EIR), will testify before the U.S. House of Representatives Natural Resources Subcommittee on Energy and Mineral...

Enverus News Release - Defying peak oil predictions
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, has released a new report highlighting the organization’s view that it does not expect global oil demand to peak or plateau by the...

Enverus Media Advisory - Welcome to Enverus EVOLVE: The pivotal event for energy professionals, thought leaders and experts
News Release
ByEnverus

Enverus, the leading generative AI and energy-dedicated SaaS company, is inviting members of the media to EVOLVE 2024, a conference focused on the evolution of the energy industry and what to expect in 2024 and beyond. EVOLVE 2024 will be...

Enverus Press Release - Blue hydrogen: Greening the bottom line
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, is releasing its inaugural Hydrogen Fundamentals report that evaluates the U.S. clean hydrogen opportunity at national and regional levels.

Enverus Press Release - CO2 pipeline economics: The missing link
News Release
ByEnverus

Enverus Intelligence Research (EIR), a subsidiary of Enverus, the leading generative AI and energy-dedicated SaaS company, has developed a CO2 Pipeline Economic Model that can be used to analyze transportation economics in the carbon, capture, usage and storage (CCUS) value...

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert