Category Archives: Natural Gas

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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Richard Meyer Natural Gas Market Indicators: April 14, 2016

There’s a record amount of natural gas left in storage as we head into the summer injection season. The question of headroom between current inventories and the total theoretical storage capacity creates the possibility that prices could head lower if adequate summer cooling demand fails to materialize.

A possible countervailing trend is production, which is starting to show signs of a flattening or even a slight declining trend. Countervailing that are the latent unconnected supplies waiting for infrastructure, which would be another bearish indicator all else equal. As always weather will play a key role in shaping the market this summer. Lots of factors to consider, but the fact remains: there is a lot of natural gas supply out there.

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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Richard Meyer Natural Gas Market Indicators: March 30, 2016

Will the natural gas bulls return? Domestic production hums along in record territory for the first quarter of the year; underground storage inventories were 51 percent above the five-year average in mid-March; and, imports from Canada and LNG remain low, but offer additional supply flexibility.

With that said, U.S. demand is down 8 percent year over year, despite gas to power showing a strong 7 percent gain above last year and new demand for LNG and Mexico pipeline exports. So could the bulls return? They might, but the supply overhang must be overcome first.

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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