Category Archives: Natural Gas

Richard Meyer Natural Gas Market Indicators: June 15, 2016

The market is showing clear signs of tightening. Slowly falling production is eating into supplies while strengthening demand from power burn and exports means the balance into storage this June has been well below average. This deficit gives a little relief to a market with storage stocks at levels about two months ahead of schedule for a typical injection season.

The market has rationalized itself with rising prices, up now $0.60 from that $2 sticking point witnessed through much of the winter. Key to this balance, as always, will be summer weather. If temperatures drive more cooling demand, the bullish injection deficit is likely to persist.

Conversely, mild temperatures could mean additional volumes into storage, which would likely prove bearish for this market. However, the potential for additional exports through year-end may offer some additional flexibility on the demand side.

As these factors adjust in relation to each other, it’s important to step back and recognize that given the diversity and strength of demand and the rapid evolution in upstream activity just how resilient this market has been, as evidenced by lower and relatively stable prices for natural gas.

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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Lisa O'Leary Call 811 Goes For Three-Peat Victory at Preakness Stakes

Photo Credit: The Washington Post

Photo Credit: The Washington Post

For the third consecutive year, a Call 811 sponsored jockey crossed the finish line first at the Preakness Stakes horserace. On Saturday, winning jockey Kent Desormeaux sported the bold “Call 811” logo and phone number on his riding pants and boots, as well as the ball cap he wore before and after the race. According to Nielsen ratings, more than 9.4 million people tuned in and saw the “Call Before You Dig” messaging as Kent rode horse Exaggerator to victory at the second leg of the Triple Crown series.

exaggerator action shot 3

Photo Credit; USA North 811

Members of the Common Ground Alliance (CGA), an organization dedicated to educating professionals and homeowners about the importance of safe digging procedures, helped secure the partnership, including Dig Alert of Southern California, Dig Safely New York, Kentucky 811 and USA North 811. In both 2014 and 2015, jockey Victor Espinoza was wearing 811 gear when he won the Preakness Stakes. Last year was especially special, as Espinoza went on to become the first Triple Crown winner since 1973.

A call to 811, which should be done a few days before beginning construction projects, planting or undertaking any kind of digging activity, connects callers to their local One Call Center which gathers information about the project and alerts your local utility company. Crews then locate the utility lines near the planned project and make sure they are properly marked so you can be sure to avoid them. The process is fast, simple and free, and prevents excavation damage – the number one cause of pipeline incidents in the United States.

To learn more about Call 811 visit http://commongroundalliance.com/. If you are a utility and have a unique and interesting way you’re promoting Call 811, let us know in the comments section below or email loleary@aga.org.

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Richard Meyer Natural Gas Market Indicators: May 26, 2016

Energy policy and related environmental issues are very likely to be key elements of the upcoming presidential race, which follows the party conventions this summer. Defining a lower carbon energy future for the country within the context of macro-economic realities and consumer choices may be served back and forth like a tennis ball at Wimbledon as the candidates outline their positions.

While that is happening, gas market events such as the trends in production, availability of underground storage to accept daily injections, the price relationship between coal and natural gas, demand for gas in power generation, and many other potential factors may influence the short-term market and preparations for the 2016–17 winter heating season. While you are watching the bouncing political ball, we will keep our eye on these other things.

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: April 28, 2016

Slowing production could be met with higher demand if temperatures rise this summer, which would bring some support to a persistently soft pricing environment. A bullish scenario is far from guaranteed though. Inventories from drilled but uncompleted (or completed but unconnected) wells are being brought to market, offsetting production declines from the low rig count. Eventually though even this inventory will dissipate. Many indicators appear to suggest a supply-demand balance tightening this year or next. It’s the how and importantly the when that are up for debate.

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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