Author Archives: Chris McGill

Chris McGill Natural Gas Market Indicators: August 15, 2017

This August has begun with natural gas to power generation volumes 5.0 Bcf per day on average below that in August 2016. Suffice to say, the record highs for natural gas consumption in the power sector during 2016 may not be matched this year. Interestingly, it is the industrial sector that is up about 0.4 Bcf per day this August compared to last and up 0.2 Bcf per day year-to-date to 21.2 Bcf daily. Demand in the residential sector is down 0.9 Bcf per day year-to-date making sector demand (without including pipeline and liquefied natural gas exports) about 3.7 lower in 2017 compared to 2016.

Recent forecasts from the National Oceanographic and Atmospheric Administration expect warmer than normal temperatures for the country except the desert southwest for August through November. As cooling degree data stands now, all regions of the country have been warmer than normal since May 2017 except for the East and West North Central, which has been slightly cooler. In aggregate, New England and Pacific regions have deviated the furthest from normal with 21.9 percent and 56.2 percent more cooling degree days, respectively, recorded since early May 2017. With that said, much of the country was cooler than normal last week and the week before, so is that a trend? Only 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.

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: July 28, 2017

Exports have been the main driver of incremental demand this July as domestic consumption has remained tepid compared with one year prior. Exports to Mexico and LNG feedgas combined has added 1.9 Bcf per day of demand to the market and, aside from a modest increase in industrial natural gas use this July, accounts for nearly the entire increase in natural gas use in the lower-48 compared with last year. No doubt this additional demand is a key reason why natural gas prices remain near $3, which in turn has helped support additional drilling rigs. However, the consequences are not apparent that a new daily natural gas production record is imminent.

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: July 13, 2017

According to Bentek Energy, July 2017 volumes of natural gas to power generation are slightly higher at 34.1 Bcf per day on average than in July 2016, which flowed at 33.7 Bcf per day. However, year-to-date volumes of gas to power generation are down 2.8 Bcf per day on average.

Along with a mild first quarter for much of the nation, which contributed to lower seasonal residential and commercial demand earlier in the year, total sector demand for natural gas is off about 3.8 Bcf per day compared to the first half of 2016. Sustained heat this summer in the east could begin to change that metric, but of course that is a wait and see.

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: June 29, 2017

Consistent and possibly growing production and moderate demand are bearish indicators and ingredients for a lower pricing environment. But, lower prices have their effects too: higher natural gas to power generation and possibly lower production activity.

Will we continue to see a bounce-around of prices in a relatively stable domain between $2 and $3.50 per MMBtu? Or is there another factor that will break the market out of this range?

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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