Author Archives: Chris McGill

Chris McGill Natural Gas Market Indicators: November 15, 2017

Cold has arrived, and with it, surging demand. U.S. natural gas consumption hit 98 Bcf per day on November 10, an increase of 33 percent from five days prior. Heating requirements for homes and businesses provided the main thrust as residential/commercial consumption jumped 93 percent during those five days. Power generation climbed eight percent over that period; exports, while strong, ticked up a mere 2.7 percent.

How much energy is 98 Bcf? The rate at which 98 Bcf per day flows chemical energy into the economy is equivalent to 1,230 GW. By comparison, the U.S. power grid boasts a little more than 1,000 GW of net summer capacity. In other words, natural gas, as it does every winter, supplies a lot of our energy needs.

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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Chris McGill Natural Gas Market Indicators: October 30, 2017

Supplies are increasing. Record levels of production are flowing into the market have more than offset slight declines in Canadian imports. Storage inventories are robust even though totals are slightly below the all-time highs set in 2016. December prices currently trade at $3.00 per MMBtu. Now we wait for the first cold snap to see how the market reacts. Winter is coming.

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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Chris McGill Natural Gas Market Indicators: September 29, 2017

September production is running among the highest monthly volumes ever for the lower-48. With the balance of Canadian and liquid natural gas (LNG) imports, total U.S. supply is up 1.8 Bcf per day this September over last year. Demand is up as well, but to a more modest degree. Higher exports have been offset by lower power burn.

Both supply and demand are poised to move into record territory as new infrastructure projects bring new supplies to new markets. Pipeline projects in Appalachia will continue to unlock constrained gas flows. Cove Point is likely to begin taking gas later this year. Amid this renewed strength in the market, supplies are robust and pricing remains low and relatively stable—a good sign for consumers as we head into the winter months.

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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Chris McGill Natural Gas Market Indicators: August 31, 2017

Even though summer temperatures have been warmer than normal on average this year, natural gas volumes to power generation remain below 2016 levels (down 2.9 Bcf per day year-to-date). Growth in gas exports has not been able to offset lower demand in both the power sector and residential/commercial, the latter of which is down 1 Bcf per day this year after a relatively mild winter. The result is that total lower-48 consumption of natural gas has been 1.9 Bcf per day less year-to-date in 2017 compared to the same period in 2016, per Bentek Energy.

Unpredictable events such as Hurricane Harvey also have an impact on the natural gas supply-demand balance in the short run. Hurricanes often require temporary production shut-ins, as Harvey does, but these events can also lead to demand reductions through cooler temperatures via the storm and reduction of economic output such as reduced manufacturing or refining during the duration of the storm.

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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