Monthly Archives: May 2014

Adam Cloch Natural Gas Market Indicators: May 30, 2014

Total demand for natural gas during the first five months of this year is running about 3.2 percent ahead of that in 2013. This is led primarily by increased volumes to the residential/commercial sectors during the first quarter of the year.

Industrial consumption is also up slightly, recognizing that processes like ammonia production for fertilizer are serving as industrial sector growth opportunities with as many as 14 plants viable for construction between now and 2017, according to Bentek Energy LLC. Bentek believes that the load growth could be 900 MMcf per day if all 14 additions are completed.

Fertilizer demand is high and natural gas as a feedstock is moderately priced – a recipe for continued demand growth. Additionally, gas delivered into underground storage facilities is picking up speed with daily double digit injections uninterrupted since May 2.

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 cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.

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Adam Cloch Natural Gas in a Brighter, More Efficient Tomorrow: Natural Gas Utilities Support National Building Safety Month

With its domestic abundance, efficiency and low emissions profile, natural gas has an important role in supporting safe and sustainable homes and businesses throughout the nation. Day in and day out, more than 177 million Americans rely on natural gas for heating, cooling, hot water, cooking and more. AGA and its member companies are dedicated to continually enhancing the safe, reliable delivery of natural gas to America’s buildings, as well as to helping customers understand how to maximize their energy usage, and that’s why AGA is proud to be next week’s (May 26-31) sponsor of the International Code Council’s Building Safety Month.

Building Safety Month 1With the theme “Building a Brighter, More Efficient Tomorrow,” AGA is sharing information on the extraordinary efficiency of natural gas, the benefits of using natural gas directly in home appliances, and tips on how customers can achieve even greater savings for their wallet and the planet. For instance, did you know:

  • When used directly, natural gas achieves 92 percent energy efficiency.
  • A household with natural gas vs. all-electric appliances produces 37 percent lower greenhouse gas emissions and results in 28 percent less energy consumption.
  • Natural gas appliances for home heating can help customers cut their energy bills in half.

While simply converting to natural gas can help consumers save on their monthly utility bills, natural gas utilities are committed to helping their customers save even more. Your local utility can suggest how to weatherize your home or business, how to reduce energy consumption, and may even offer rebates and discounts on energy efficient appliances and home or building efficiency improvements. In 2012, utilities invested $1.1 billion in natural gas efficiency programs that helped customers reduce their typical annual natural gas usage by an average 16 percent and save $117 in annual energy costs – in total saving 136 trillion Btu of energy and offsetting 7.1 million metric tons of carbon dioxide emissions. You can find more information about energy efficiency and natural gas utilities here.

Building Safety Month 2Utilities are focused on the safe and reliable delivery of this foundation fuel to millions of Americans every day, and safety is the top priority for AGA and its members. The industry continues to take action to further enhance the safety and reliability of its systems. The industry has multiple safeguards in place to protect their customers, and they work to spread public awareness messages so that customers can actively participate in the safety of their homes, businesses and communities. Here’s how you can help ensure your safety around natural gas:

  • Properly maintain gas appliances and fuel lines.
  • Call 811 before embarking on any excavation or digging project – even planting.
  • Report the smell of natural gas to your local natural gas utility. Utilities odorize natural gas with Mercaptan – which smells similar to rotten eggs – to help customers detect leaks.
  • Be attentive to safety communications provided by your utility.
  • Help your kids understand natural gas safety with resources like AGA’s Kids Safety Video.

More information on Building Safety Month and Natural Gas:

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Adam Cloch AGA Gets Social with Annual Financial Forum and Operations Conference

Meeting Organizers Add Free Mobile Apps for Attendees

Beginning this weekend, the American Gas Association (AGA) will feature two major events on our social media channels. First up, the 2014 Financial Forum in Miami, Florida on May 18 through May 20 will allow energy industry executives, security analysts, portfolio managers, rating agencies, and commercial and investment bankers to evaluate the outlook for the energy industry and individual companies. AGA will be livetweeting from the event and you can follow along by searching #AGAFF and @aga_naturalgas on Twitter.

Next on the agenda is the 2014 Operations Conference in Pittsburgh, Pennsylvania on May 20 through May 23. This event is the natural gas industry’s premier gathering of gas utilities and transmission company operations management from across the world. Participants will share technical knowledge, as well as the latest strategies and best practices to safely and reliably deliver natural gas. Join the conversation on Twitter using #AGAOps and follow @aga_naturalgas for live updates from the conference.

Both events are also offering free mobile apps for attendees that feature programs, agendas, attendee lists and more. The mobile app for the Financial Forum, sponsored by Wells Fargo, is available by typing https://crowd.cc/s/23VO onto your smartphone or tablet’s internet browser. For the mobile app for the Operations Conference, type https://crowd.cc/s/25uQ onto your smartphone or tablet’s internet browser.

AGA will also be keeping a close eye on Call 811-sponsored jockey Victor Espinoza as he rides Derby-winning California Chrome in the second jewel of the Triple Crown, the Preakness Stakes, on Saturday afternoon. Thanks in part to nearly 40 members of the Common Ground Alliance, an organization dedicated to educating professionals and homeowners about the importance of following safe digging procedures, millions of viewers around the world will be reminded of the importance to “Call 811 Before You Dig.“

We hope you’ll join us in the many exciting conversations we’ll be having online in the coming days.

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Richard Meyer Natural Gas Market Indicators: May 15, 2014

The strongest pull on natural gas for the power generation sector recently has come from the Southeastern United States, even though the overall demand for gas to power generation is down about 0.5 Bcf per day year-to-date in 2014 compared to 2013. That said, total domestic gas consumption is up 4.4 percent year over year with the biggest real increase coming in the residential/commercial sector given the extraordinary heating loads required in January and February 2014 for much of the country.

Market demand has dropped sufficiently so that daily injections of gas into underground storage facilities are consistently reaching double digits, as is normal at this time of year. The forward futures market seems happy with gas contracts in the $4.50 per MMBtu and lower range through the summer and early fall, so now we wait. What event may upset the apple cart or will this relative stability in markets and pricing persist until the first winter cold appears? Stay tuned.

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 cmcgill@aga.org or Richard Meyer at rmeyer@aga.org.

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