Category Archives: environment

Chris McGill Natural Gas Market Indicators: March 14, 2014

While it may not feel like it, the winter heating season is technically approaching its close.

Even with short-term local daily cash price peaks, natural gas futures have remained remarkably stable, generally in the $4.25 to $4.75 per MMBtu range going as far out as 2017. This reflects confidence in the ability of domestic production to meet weather-induced and growing institutional demand for natural gas in the industrial, power generation and weather sensitive small volume customer sectors.

These observations continue to support the takeaway from the Natural Gas Market Indicators publication two weeks ago which stated that the nation’s natural gas supply portfolio has handled persistent cold and major weather events very well this winter heating season.

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: February 28, 2014

Natural gas March futures closed at $6.09 per MMBtu on February 19 and went even higher afterwards before falling once again. This could seem like a dramatic rise and psychological threshold for natural gas prices, but there are some important facts to keep in mind for context. First, it has been a very cold winter with persistent low temperatures. Records for highest month, week and day for total natural gas consumption were in January.

This January also saw the highest winter-month electricity load, ever. For its part, natural gas volumes to power generation for a January were the highest ever recorded, also. February natural gas demand is 8.6 percent above last year while storage volumes are 35 percent below the five-year average. With that said, winter price movements have been muted compared to history when similar piled-on events have occurred. What then is our takeaway? That the nation’s natural gas supply portfolio, so far, has handled persistent cold and major weather events very well.

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: February 13, 2014

A number of winter season records were set in January 2014, including volumes directed to power generation. According to Bentek Energy LLC, average daily consumption of natural gas for power of 21.4 Bcf in January was an all-time high for the month, as was the volume of 31.1 Bcf for a single day of gas-fired generation on January 7. These facts point to the institutional load increases that are building for power generation within the natural gas energy sector.

Even price has not adversely impacted the growth in gas to power generation during winter months, inasmuch as February 2014 Henry Hub cash has averaged about $5.84, which is higher than February 2012 and 2013 cash prices by 141 and 75 percent, respectively, according to Bentek Energy LLC. In addition, January 2014 exhibited the highest electric load for a winter month ever required from all generation sources, according to Bentek.

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, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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Christina Nyquist Natural Gas, Renewables and Energy Efficiency will build a Sustainable Energy Future: Four Facts from the Sustainable Energy in America Factbook

Released today, the Business Council for Sustainable Energy 2014 Sustainable Energy in America Factbook joins other insightful analyses demonstrating that natural gas will continue to serve as a foundation fuel – working alongside energy efficiency and renewable energy – in the nation’s clean and secure energy portfolio. Our nation’s energy economy will be built on a healthy combination of natural gas, renewables and energy efficiency. The 2014 Factbook helps confirm that all of these clean energy options can coexist as our nation builds a more secure, sustainable, efficient and affordable energy future.

Below the Infographic are four points from the 2014 Factbook illuminating the role natural gas has played and will continue to play in shaping today’s energy landscape.

2014 Sustainable Energy in America Factbook Infographic Natural Gas, Renewables and Energy Efficiency will build a Sustainable Energy Future: Four Facts from the Sustainable Energy in America Factbook

The 2014 Sustainable Energy in America Factbook Infographic illustrates how natural gas fits into a sustainable energy landscape.

Fact 1: Working alongside energy efficiency and renewable energy, natural gas has contributed to a nearly 11 percent decline in U.S. energy-related carbon dioxide emissions since 2007.

The low emissions profile of natural gas means that greater use of this clean fuel driven by its relatively low price has contributed to a healthier environment.

Fact 2: Natural gas production and consumption both increased in 2013.

Our nation is producing more natural gas than ever before and we are using it wisely and more efficiently. Spurred by the relatively low price of natural gas due to abundant domestic supply, more Americans are turning to natural gas to meet their energy needs, yet doing so efficiently. A home today uses 45 percent less natural gas compared to a house in 1970, saving the customer almost $600 per year, according to EIA data and AGA analysis. Each year natural gas utilities devote nearly $1 billion to natural gas efficiency programs, and that number will continue to grow.

Fact 3: Natural gas use in the transportation sector has increased 38 percent since 2006.

Leaders in every sector of our economy are embracing natural gas for transportation – not because they are required to, but because it offers real savings, real stimulus and real solutions. The American Gas Foundation and IHS CERA recently released a study entitled “Fueling the Future with Natural Gas: Bringing it Home,” which found that a natural gas vehicle will save customers an average of $4,500 in fuel costs over five years compared to a gasoline vehicle while producing fewer tailpipe emissions.

Fact 4: Investments in midstream gas – transmission and distribution pipeline and storage – were $15.1 billion in 2013.

Enhancing and expanding the pipeline network that safely and reliably delivers natural gas is essential if we are to fully realize the benefits of this clean energy source for all Americans. Natural gas utilities are working hard with policymakers at every level to create mechanisms that advance both the modernization and expansion of their pipeline systems.

Natural gas will be the foundation for a secure energy future that has room for all clean energy solutions. Today, thanks to our nation’s abundant supply of clean natural gas, we do not need to choose between providing essential energy to people and protecting the planet. America’s natural gas utilities work alongside other clean and renewable energy sources to build a clean and affordable energy economy. All Americans stand to gain if we make investments and update our policies now to realize the full potential of natural gas.

The Sustainable Energy in America Factbook is an important addition to the growing body of knowledge supporting a fact-based conversation about our energy choices. For more natural gas facts check out:

 

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