Richard Meyer Natural Gas Market Indicators: July 31, 2014

The end of July has brought with it softening natural gas prices, the result of a confluence of supply and demand elements. Only a few months ago, some analysts questioned whether natural gas storage levels would be able to make a comeback following an 11-year record low for inventories at the end of the winter season. Today, we see natural gas volumes injected into storage at rates not seen in more than a decade and prices in the sub $4 range. Modest temperatures, seasonally low power generation load requirements, and record natural gas production are all ingredients into this summer’s recipe for relatively low Henry Hub prices and the supply position in which the country now finds itself immersed. That said, there still remains two months of summer, three months in the underground storage injection season, and an Atlantic hurricane season that has just gotten underway. Factors to keep an eye on include an uptick in temperatures; natural gas requirements for power generation; dry gas production flows; and supply issues related to disruptive weather events, such as storms in the Gulf of Mexico. However, even if one or more of these possibilities materializes, the US is still in a strong supply position – a fact that the market may be taking into account.
Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas and Rig Counts.
Please direct questions and comments to Chris McGill at or Richard Meyer at
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Tracy Burleson Join AGA at the 2015 International Builders’ Show

IBS15 email graphic v3 300x300 Join AGA at the 2015 International Builders ShowIn 2015, the International Builders’ Show (IBS) and the Kitchen & Bath Industry Show (KBIS) will again co-locate at the Las Vegas Convention Center to create Design and Construction Week. The two events will remain separate and distinct shows held simultaneously, January 20 – 22, 2015. One badge will provide access to all the exhibits with an estimated 90,000 attendees.

As these build and design professionals enter the exhibition hall, the natural gas industry exhibit will be one of the first exhibits they see. This 2,500-square-foot exhibit will be the result of an important partnership between AGA members and manufacturers of gas appliances demonstrating the latest, most innovative technologies available to consumers.

In 2015, AGA will be the energy sponsor of The New American Home (TNAH). Since 1984, TNAH has served as the official show home of IBS. The home’s design, construction and amenities showcase the latest in innovative products for the future of home building. TNAH will feature 18 natural gas appliances in 2015.

The construction market continues to show signs of recovery and IBS exhibitor space sales has outpaced last year with more than 400,000-square-feet sold. If you are interested in supporting the natural gas industry efforts at IBS as a volunteer or manufacturer, please contact Tracy Burleson at

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Lisa Dundon NW Natural Launches Online Tool to Assist Customers with Saving Energy and Money

This week, AGA member company NW Natural launched a new online tool designed to help the utility’s nearly 700,000 customers in Oregon and southwest Washington save energy and money.

The Energy Analyzer, available through NW Natural’s website, begins with a series of questions about customers’ energy use, including how much money they want to invest in potential projects. Once this step is completed, customers receive a wide range of suggestions to help improve the efficiency of their home based on varying factors including time, skill, budget and energy they’d like to save.

Developed with the help of the Energy Trust of Oregon, the Energy Analyzer also assists customers in comparing the amount of energy they use to similar homes in the surrounding area. Users can also sign up to receive ongoing e-mails reminding them to finish the energy-saving projects they’ve self-selected.

“Our customers are paying less for natural gas than they did 10 years ago,” said Cory Beck, NW Natural Communications & Internet Services Manager. “But, they can save even more money and energy when they take steps to improve the efficiency of their home.”

Customers who test out the Energy Analyzer from now through September 5 will automatically be entered into a contest to win a tankless water heater. Visit for complete contest rules.

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Richard Meyer Natural Gas Market Indicators: July 15, 2014

As the northern hemisphere summer is half way through, perhaps it is a good time to take stock of where we are at.

On the supply front, production is as strong as it has ever been, with near record-breaking levels of dry gas produced at volumes more than 68 Bcf per day since June. Supplies directed toward storage have been similarly robust with a record setting eight straight weeks of 100+ Bcf injections since May. In other words, production is solid and supplies are rebuilding.

On the demand side, cooler summer temperatures compared with 2013 have eased power burn demand this July by nearly 2 Bcf. Industrial and residential-commercial demand are up slightly, as well as exports to Mexico. Therefore, the decline in July demand overall relative to last year is only 0.6 Bcf per day.

The result of this supply-demand balance is a natural gas price at Henry Hub of $4.11 per MMBtu – well below where the summer season began. This suggests that the market sees a sturdy supply portfolio that is able to meet both short-term demand pulls and seasonal storage obligations as operators refill for next winter. In other words, the market is behaving in an expected fashion.

Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Please direct questions and comments to Chris McGill at or Richard Meyer at

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