Category Archives: Natural Gas

Chris McGill Natural Gas Market Indicators: August 28, 2015

The Environmental Protection Agency (EPA) released its new methane reduction rules aimed at limiting emissions from oil and natural gas operations from the wellhead to the distribution city gate. The rule includes elements targeting hydraulically fractured oil wells—something the New Source Performance Standards did not cover in 2012. The new standards would be expected to cost the industry about $370 million to implement annually by 2025, but bring in $460 to $550 million in benefits. It is not expected (at least by EPA) to be a limiting factor for future domestic production.

U.S. production averaged 72 Bcf per day in August. An extended maintenance season this summer has moderated some production growth in all areas of the country. Still, current average daily production year to date has been 4.0 Bcf higher than the same period in 2014.

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 AGA Members Draw Awareness to Safe Digging on 811 Day

On August 11, the Common Ground Alliance (CGA) once again commemorated National 811 Day to promote safe digging practices and the Call Before You Dig campaign. No matter the type and size of digging project – from installing a mailbox to building a patio or deck, it is always critical  to call 811 several days prior to digging to identify the approximate location of underground utility lines, including natural gas. Excavation damage continues to be the leading cause of natural gas pipeline incidents across the country, though improvements are being made thanks to the education and outreach by CGA, local natural gas utilities and other stakeholders.

Each year on 811 Day, the American Gas Association’s (AGA’s) member companies work to educate their customers and the communities they serve about the importance of calling 811 before digging. The following highlights showcase many of the activities AGA’s members and partners participated in to help raise awareness about calling 811:

Image Credit: PHMSA

Image Credit: PHMSA

Throughout the month of July, the U.S. Department of Transportation (DOT) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) took over the Navy Yard/Nationals Park Metro station in Washington, D.C. with 811 banners, posters and other signage.

Image Courtesy of CGA

Image Courtesy of CGA

On August 6, DOT and PMSA hosted a pre-baseball game event at the Washington Nationals’ stadium with Deputy Secretary of Transportation Victor Mendez and this year’s winner of Energy Safe Kids’ annual 811 poster contest. Safe digging procedures and Call 811 were promoted during all five baseball games prior to August 11, most notably on a banner directly behind home plate.

Image Credit: CenterPoint Energy

Image Credit: CenterPoint Energy

CenterPoint Energy in Houston, TX hosted a downtown block party complete with food and prizes, while the utility’s Minnesota branch teamed up with marking companies for the annual 811 5k Run/Walk followed by a kids fun run, awards ceremony, prizes and safety fair. All proceeds from the 5k benefitted Operation Warm, an organization that provides warm winter coats to children in need.

Image Credit: CGA

Image Credit: AGA

Pacific Gas & Electric, along with CGA and other stakeholders, had the honor of ringing the New York Stock Exchange closing bell in front of a large Call 811 banner on 8/11. Click here to watch the archived video from the event.

columbia gas 811 cake

Image Credit: Columbia Gas of PA

Things got a little wild at the Washington Wild Things baseball game on 8/11 thanks to Columbia Gas of Pennsylvania. Tickets were just $8.11 and Digger Dog threw out the first pitch.  In addition to the game, Columbia Gas distributed special 811-themed cakes  to local radio stations to help drive awareness during the morning commute and online.

Image Credit: Victor Espinoza/Twitter

Image Credit: Victor Espinoza/Twitter

Call 811-sponsored jockey and Triple Crown winner Victor Espinoza once again took to his Twitter page to remind customers to call 811 before beginning any digging projects, big or small.

In addition to 811 Day, the month of April is National Safe Digging Month (NSDM). As part of their ongoing commitment to safety, AGA member companies air PSAs and TV spots, host events and contests, and carry out social media campaigns to promote safe digging. If you are a natural gas utility, let us know about future Call 811 activities in the comments section below. We’d love to hear what your utility has in the works and to share your activities on AGA’s social media pages and blog. You can also email loleary@aga.org.

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Richard Meyer Natural Gas Market Indicators: August 14, 2015

Much of the near-term pricing analysis for natural gas in energy literature today points to the fact that as August winds down cooling loads will likewise lessen and natural gas storage will continue to build toward a strong pre-winter position—all moderating factors in price expectations.

On the other hand, more gas to power generation seems to be price-induced and structurally built in to gas markets—factors that would seem to point to price increases once winter demand loads begin. Pricing bulls and bears, bears and bulls. Similar tugs in both directions have led to relative stability in Henry Hub pricing this summer.

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 31, 2015

Daily natural gas volumes to power generation reached 36.8 Bcf on July 20, then 37.4 Bcf on July 28—both strong daily numbers. Previously, AGA reported that volumes of natural gas to power have also been peaking during winter months. With that said, the daily winter peak for gas-fired electricity in 2015 was 30 Bcf back in January. Overall, the power sector is the primary reason that demand in 2015 exceeds that of 2014. Average consumption of natural gas to power generation year to date has been 25.4 Bcf per day, which is 3.8 Bcf per day higher than in 2014.

As discussed previously in Market Indicators reports, structural changes in the national generation mix and market hub prices for natural gas below $3 per MMBtu help to account for the year over year difference. This year, in particular, power sector natural gas consumption has been impacted by record low hydro-generation in the Pacific Northwest, too.

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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