US July natural gas production slips from June-EIA

NEW YORK, Sept 29 (Reuters) - U.S. gross natural gas production in July fell 1.1 percent from June and stood about 1.4 percent below year-earlier levels, according to recent data from the U.S. Energy Information Administration.

In its EIA-914 Monthly Natural Gas Production Report, EIA said "wet" gas output in the lower 48 states fell to 62.55 billion cubic feet per day in July, down 0.69 bcf per day, or 1.1 percent, from revised June figures and .91 bcf per day, or 1.4 percent, below July 2008.

It was the first time this year that gross natural gas output fell below year-ago levels.

EIA said overall production declined in July due to a 9.1 percent drop in Wyoming output from shut ins and gas plant maintenance.

Louisiana production in July increased 3.6 percent to 4.37 bcf daily, primarily from new wells in the prolific Haynesville shale formation.

The EIA data are gross estimates and are the basis for calculating marketed production after subtracting gas used for repressuring, quantities vented and flared, and nonhydrocarbon gases removed in treating or processing operations.

EIA said the data is based on an updated sample and calibration year, and apparent changes in estimated production for December and January for some states may not be comparable.

EIA said it is conducting a comprehensive review of ways to improve natural gas production estimates and plans to publish a single set of revisions to its estimates for 2008 and 2009 when the review is complete later this year along with documentation of any methodological changes. (Reporting by Joe Silha; Editing by Walter Bagley)