Author Archives: Richard Meyer

Richard Meyer 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.

Posted in Natural Gas Market Indicators | Leave a comment

Richard Meyer 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.

Posted in Natural Gas Market Indicators, weather | Leave a comment

Richard Meyer 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.

Posted in Natural Gas Market Indicators, weather | Leave a comment

Richard Meyer 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.

Posted in Natural Gas Market Indicators | Leave a comment