EIA sees U.S. natgas production down 3.8 pct in 2010

NEW YORK, Nov 10 (Reuters) - The U.S. Energy Information Administration on Tuesday slightly raised its estimate for domestic natural gas production in 2009, but said reduced drilling and declining well productivity should result in sharply lower output next year.

In its November Short-Term Energy Outlook, EIA said it expected marketed natural gas production to be up 2.8 percent in 2009, primarily due to strong first half output, then decline by 3.8 percent in 2010.

EIA also forecast U.S. natural gas consumption this year would average about 62.18 billion cubic feet per day, down 1.9 percent from last year's daily rate of 63.37 bcf.

EIA said it expected gas demand in 2010 to slip 1.1 percent to about 61.49 bcf per day as gains in residential, commercial and industrial use next year are more than offset by a large decline in the electric power sector. (Reporting by Joe Silha)