Monthly Archives: December 2013

Richard Meyer Natural Gas Market Indicators: Dec. 31, 2013

The newest estimation of the natural gas supply/demand balance from the Energy Information Administration (EIA) recorded in the 2014 AEO Outlook Early Release is a mixture of many interesting observations, modeled results and assumptions. In some cases, the view is more optimistic than it was in 2013. Noting many evolving market conditions, for example, EIA envisions strong and earlier than previously expected total LNG and pipeline natural gas exports. This is supported by a domestic production picture that grows more than 50 percent from 2012 to 2040 on the back of unconventional resource development.

Demographic changes are influencing model results as well. For example, EIA sees a reduction in the growth of vehicle miles traveled due primarily to an aging population. Couple this observation with increases in fuel economy for light duty vehicles and the recipe makes for a reduction in energy consumed in the personal vehicle market from about 16 quadrillion Btus in 2012 to 12.1 quads in 2040.

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.

Reader Notice

AGA is very grateful for the reader interest in our Natural Gas Market Indicators report, which is now marking the 218th issue published. Although we will continue to circulate the document twice per month via e-mail, a new look is in the works and new tools for you to forward the report to others are being developed. Please be on the lookout for initial changes in the format beginning January 2014. Our content and purpose will remain the same, which is to provide you a snapshot of critical natural gas industry developments from a local gas utility perspective. Thank you again for your interest in our market views and your readership.

Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.

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Adam Cloch Dave McCurdy: Natural Gas Provides U.S. With Incredible Opportunity

This week, AGA President and CEO Dave McCurdy participated in the National Journal’s Energy Insiders blog to respond to their question, “How Best Can We Use Natural Gas? Should We At All?” His response is posted below and you can also visit the National Journal Energy Insiders blog to view the entire comments thread.

“The United States has an incredible opportunity because of our abundance of clean natural gas. When used effectively and appropriately, natural gas can meet our national goals of boosting our economy, improving our environment and increasing our energy security. To do this, we need policies at every level of government that are in line with the savings and environmental benefits currently being achieved throughout the country.

Direct use – using appliances in your home that run on natural gas – is the most efficient way to use this domestic resource and it saves consumers money. A typical new home with natural gas saves between $500 and $1,300 annually compared with other fuel sources. Using natural gas as a transportation fuel costs drivers half as much on average as gasoline or diesel. Lawmakers from both sides of the political aisle and leaders in every sector of our economy are investing in natural gas – not because they are required to, but because it offers real savings, real stimulus and real solutions.

Bolstered by affordable and stable prices, communities are seeking greater access to natural gas for use in homes, businesses and vehicles, and this clean energy source is driving a renaissance in manufacturing. We envision a future where natural gas not only provides energy for homes and businesses, but runs a significant number of our vehicles, generates power and supports other forms of renewable energy. North America’s robust natural gas resources are positioned to satisfy significant new natural gas demand at affordable and competitive prices well into the future.

From production to your home or business, the natural gas delivery system is 92 percent efficient and deemed the safest energy delivery system in the nation. A concerted effort by America’s natural gas utilities and others is making it safer and cleaner. Our nation’s energy future will be built on the foundation of the more than 2 million miles of natural gas pipelines operated by America’s natural gas utilities – a 21st century infrastructure capable of providing safe and reliable service to our customers today and serving the nation’s energy needs tomorrow.”

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Adam Cloch Natural Gas Market Indicators: Dec. 13, 2013

An early-season cold Canadian air mass and snowy, icy conditions from the northern plains to the middle Atlantic have pushed Henry Hub and prompt-month futures pricing to more than $4.25 per MMBtu. In addition, natural gas demand exceeded 115 Bcf on Sat., Dec. 7, 10 and 11 (the highest volume of consumption since Jan. 2013), which does happen periodically but not normally this early in the season.

Strong storage withdrawals have answered the call, but some production areas have been influenced by well freeze-offs. It has been a rather dynamic start to the 2013-14 winter heating season. Could the country actually experience a colder-than-normal winter from start to finish during the next four months? Time will tell.

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.

Reader Notice

AGA is very grateful for the reader interest in our Natural Gas Market Indicators report, which is now marking the 217th issue published. Although we will continue to circulate the document twice per month via e-mail, a new look is in the works and new tools for you to forward the report to others are being developed. Please be on the lookout for initial changes in the format beginning January 2014. Our content and purpose will remain the same, which is to provide you a snapshot of critical natural gas industry developments from a local gas utility perspective. Thank you again for your interest in our market views and your readership.

Please direct questions and comments to Chris McGill at cmcgill@aga.org or Richard Meyer at rmeyer@aga.org

Posted in energy, environment, Natural Gas, people, weather, winter heating | Comments Off on Natural Gas Market Indicators: Dec. 13, 2013

Adam Cloch AGA Members Join Together To Bring Awareness to LIHEAP Enrollment in Western PA

Legendary Pittsburgh Steelers running back Franco Harris helped four utility members of the American Gas Association located in Western Pennsylvania kick off the Low Income Energy Assistance Program (LIHEAP) for the 2013-2014 winter heating season.

The “Partners for Warmth” — comprised of Columbia Gas of Pennsylvania, Equitable Gas Company, Peoples Natural Gas, and Peoples TWP — have been helping low-income customers in the Pittsburgh area afford their winter heating bills for more than two decades. Nearly 510,000 residents, half of which were households with children, kept their heat on last winter thanks to this unique partnership. Approximately $141 million in LIHEAP funds are available again this year, but Partners for Warmth officials are urging area customers to apply as soon as possible.

partners for warmth

“We all know a friend, neighbor or family member who may have fallen on tough times. Anyone who is having trouble paying their heating bills should find out if they are eligible for LIHEAP assistance and apply as soon as possible,” said Harris, honorary chairman of the partnership.

LIHEAP is a block grant program under which the federal government gives states annual funds to operate home energy assistance programs for low-income households that struggle to heat their homes in the winter and cool them during the hot summer months. To date, approximately $2.9 billion of FY 2014 block grant funding has been released to LIHEAP grantees, representing about 90 percent of the FY 2013 funding. AGA continues to advocate for responsible funding levels and greater certainty surrounding funding release and distribution.

Eligibility guidelines for LIHEAP change, and customers who may not have been eligible in the past are encouraged to reapply. For the 2013-2014 winter heating season, the income eligibility limit is 150 percent of federal poverty income guidelines. For more information about eligibility, click here. To learn about Partners for Warmth, visit www.partnersforwarmth.org, and for additional details about LIHEAP funding and how to apply, visit www.liheap.org.

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