The one-two-three combination punches of cold weather to the eastern half of the United States have not been enough to pull natural gas commodity prices above $3 per MMBtu. Amid low prices the U.S. is on track to break the all-time record for February natural gas demand, suprassing the record previously set in 2014.
As demand surges, strong dry gas production continues apace as well. Flowing more than 11 percent higher than February 2014, production volumes have helped move storage volumes into a surplus relative to last year. How long this price environment will last remains to be seen. Supplies are now in a stronger place than last year or any time in recent history – which, of course, has contributed to the lower natural gas price environment.
Volumes to power generation and industrial demand are both running above last year, as have volumes to residential and commercial customers. The question remains how much more demand can the market absorb. If production continues to outpace demand growth, how long will the market continue to grow production at low prices? This year is shaping up to be another interesting one indeed.
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.






