Many years ago, the month of September was the time when the natural gas industry and the market began taking stock of supplies in preparation for price increases that were certain to occur. Companies would set expectations for the winter, where the rush of demand would push prices upwards. This preparation still exists today, as do price movements, but conditions have changed substantially. The expected supply concerns of even a decade ago have transitioned to a more modern recognition of supply diversity and abundance. This year a strong supply base has continued to outpace even record levels of demand, which has been driven by record levels of natural gas to power generation, itself up 16 percent. The result has been a near record push of volumes into storage, which might hit the 4 Tcf mark before the winter turnaround. The past few years the U.S. has entered the winter season with a robust supply outlook. Right now 2015 appears poised to follow suit.
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.
