Category Archives: Natural Gas

Richard Meyer Natural Gas Market Indicators: Feb. 26, 2015

The one-two-three combination punches of cold weather to the eastern half of the United States have not been enough to pull natural gas commodity prices above $3 per MMBtu. Amid low prices the U.S. is on track to break the all-time record for February natural gas demand, suprassing the record previously set in 2014.

As demand surges, strong dry gas production continues apace as well. Flowing more than 11 percent higher than February 2014, production volumes have helped move storage volumes into a surplus relative to last year. How long this price environment will last remains to be seen. Supplies are now in a stronger place than last year or any time in recent history – which, of course, has contributed to the lower natural gas price environment.

Volumes to power generation and industrial demand are both running above last year, as have volumes to residential and commercial customers. The question remains how much more demand can the market absorb. If production continues to outpace demand growth, how long will the market continue to grow production at low prices? This year is shaping up to be another interesting one indeed.

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: Feb. 13, 2015

The push toward natural gas power generation continues. New data from FERC shows natural gas comprised nearly half the new installed electric capacity additions in 2014 – wind plus solar accounted for the other half.

For the first six weeks of 2015, natural gas volumes serving power generation are up approximately 0.8 Bcf per day compared to this time last year, remembering that January 2014 was an all-time record winter month for gas to power gen. For the nation as a whole, heating degree days have been nearly five percent fewer than normal (warmer than normal) and thus heating load is down from the previous year by about 7.2 Bcf per day.

Overall U.S. demand is down about 6.7 Bcf per day. That means it is possible that storage inventories will be higher than last year as net injections begin in the spring, leaving more natural gas available to meet summer cooling loads. This comes when natural gas prices are low compared to recent history and generators turn to gas for its pricing and environmental attributes. One thing builds on another as the market progresses in 2015.

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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Christina Nyquist New Data Shows Natural Gas Customers Saving More Money, More Energy and Reducing Environmental Footprint

Natural gas customers are saving more money, more energy and emitting less carbon than ever before.

That’s the takeaway from the latest data in the freshly updated 2015 American Gas Association Playbook, released today. The go-to guide for natural gas information shows that natural gas customers saved an average of $693 per year from 2012-2013 while reducing their carbon dioxide emissions by half a million metric tons. In addition, emissions from distribution pipelines dropped an additional six percent in 2014 as utilities continued to upgrade and modernize infrastructure to enhance safety.

The updated Playbook highlights several key national trends, including:

Natural gas customers are saving more money, more energy and emitting less carbon than ever before.

Average yearly savings for households using natural gas appliances increased $40 between 2012 and 2013. From 2012-2013, households using natural gas appliances saved an average of $693 per year compared to households using other energy choices. Utilities helped customers save 136 trillion Btu of energy and offset 7.1 million metric tons of carbon dioxide emissions in 2012, an increase of 11 trillion and 0.6 million from 2011 respectively.Nat Gas Means Savings for Consumers

Safety remains a core value for natural gas utilities.

Pipeline incidents have declined approximately 40 percent over the past three decades as natural gas utilities continue to work to enhance safety. Natural gas utilities spend $19 billion annually and take a number of voluntary actions to help enhance the safety of natural gas distribution and transmission systems.

Safest Energy Delivery System in the Nation

Emissions from natural gas distribution systems continue to decline.

Emissions from natural gas systems dropped another 6 percent from 2014. In total, emissions from natural gas distribution systems have dropped 22 percent since 1990, even as the industry has added more than 600,000 miles of pipeline to serve over 17 million more customers.Cleaner Air and Reduced Emissions

Natural gas utilities continue to increase investments in energy efficiency programs.

Utilities invested $1.1 billion in energy efficiency programs in 2012 and 2013, an increase of $100 million from 2011.

Residential Nat Ga Use - Efficiency Success Story

More states are pursuing strategies to expand and enhance natural gas infrastructure.

Eight additional states are pursuing natural gas growth through innovative expansion proposals, growing the number from 17 states in 2014 to a total of 25 today. Meanwhile, 38 states have adopted specific rate mechanisms that foster accelerated replacement of pipelines no longer fit for service, supporting enhanced safety, reliability and performance of natural gas delivery systems.

Expanding the Reach - 25 StatesCheck out the complete AGA Playbook for more facts and information, and visit http://www.aga.org/ to learn even more about all that goes into delivering affordable, reliable, efficient and safe energy solutions.

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Dave McCurdy Foundation Fuel for a Sustainable Energy in America

I am proud to participate again in the launch of the Sustainable Energy in America Factbook. As always, Bloomberg New Energy Finance has put together a detailed look at our nation’s energy picture and an expert discussion of the path we are on. The only way to examine this path is through a fact-based dialogue, and this report has once again reinvigorated this discussion.

BCSE Factbook

The Sustainable Energy in America Factbook continues to prove that growth in renewable energy can happen simultaneously with a growth in natural gas and a strong U.S. economy. Between 2007 and 2014, U.S. carbon emissions from the energy sector dropped 9 percent, U.S. natural gas production rose 25 percent and total U.S. investment in renewables and other clean energy technologies was more than $385 billion. Natural gas is a foundation fuel and working alongside renewables and energy efficiency it provides an incredible opportunity to deliver the essential energy that will help drive economic growth while protecting the environment.

2014 was another record year for natural gas use. In the midst of the ‘polar vortex’ in January of last year, the natural gas delivery system set daily, weekly, and monthly records. Natural gas reliability was tested, but local utility customers throughout the country continued to receive dependable service at affordable prices. Diligent planning and preparedness of natural gas utilities and the strategic use of underground storage made sure resources were available during peak demand periods. At year end, natural gas demand hit 66.9 Bcf per day, an increase of 1.8 Bcf per day compared to 2013. The natural gas industry is responding, building and reconfiguring infrastructure to reflect the changes of this shifting and rapidly expanding market including changes to how we move gas around the country.

2015FB_ Natgas

This national trend is made possible by the work being done in communities throughout our country. Using natural gas in your home or business saves money and reduces energy use and greenhouse gas emissions.  Local utilities are delivering these energy solutions every day to customers across the nation.

Thank you to the Business Council for Sustainable Energy for leading this dialogue about how our nation can remain on the path towards sustainability. Natural gas utilities will continue to serve our customers safely and reliably and remind policymakers at every level of the inherent benefits of the direct use of natural gas.

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