Warm weather for the country as a whole has completely trumped any market pressure on pricing that may have developed this winter given reductions in gas-directed drilling.

More natural gas may displace coal in power generation in the short-term and market changes will come, eventually. However, little is expected to change for the balance of the winter heating season unless there is an extraordinary cold weather event.

Visit this link to download the full Natural Gas Market Indicators.Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Natural gas is our country’s foundation fuel and is well positioned to serve as a reliable, secure and clean energy source for U.S. homes, businesses and industries for decades to come. In an article in the recent issue of Oil & Gas Monitor AGA President and CEO Dave McCurdy outlines some of the ways Americans can utilize natural gas to improve our economy, reduce our impact on the environment and secure our nation’s energy future. Take a look.

Energy Biz did a terrific job of laying out for their readers the various options that neighborhoods, businesses and consumers have when choosing how to consume electricity, heat their homes, and cook their food.  Dave McCurdy’s article is alongside others by leaders in the energy industry.

I urge you to read them all and see why natural gas is emerging as a clear favorite as our nation strives for energy independence.  Natural gas can help meet the energy needs in all sectors – residential, commercial, industrial, electricity generation, and transportation – cleanly, economically, and efficiently.

Indeed, pricing pressure today as a result of market forces means starting at a baseline of $3 per MMBtu. A 50 percent increase in average acquisition prices would only result in a baseline that many analysts believe is ultimately necessary to sustain the long-term health of U.S. gas production.

Perhaps the key to this puzzle is not rig counts but demand for natural gas. Realizing the full potential of North American natural gas energy may not occur until it is actually demanded.

Visit this link to download the full Natural Gas Market Indicators.Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

According to a new report released by the American Council for an Energy-Efficient Economy (ACEEE), “Nationwide the budgets for these programs reached $942 million in 2010, saving 529 million therms-enough natural gas to take care of the needs of 695,000 average American homes. These programs have experienced rapid growth. In 2005 total budgets were $125 million nationwide.”

The report is jam-packed with information. It examines the structure, origins, funding, and impacts of natural gas efficiency programs for the forty-one states where they are in place. For instance, if you live in California, it includes information on the programs offered by Pacific Gas & Electric (PG&E), Southern California Gas Company (SCG), and San Diego Gas & Electric Company (SDGE).

The entire report is downloadable for free on the ACEEE website.

However, strong supply and relatively mild temperatures in many parts of the nation have cooperated to only impose subtle influences on price movements in the face of the 2011-12 winter heating season. Quantifying that relationship, domestic production in 2011 has risen 7.4 percent year-over-year from 2010, reflecting additional gas produced from shale formations and sold into market.

However, year-to-date demand was up only 1.2 percent over last year led primarily by increased gas supplied to power generators.

Visit this link to download the full Natural Gas Market Indicators.Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

In a new survey conducted by the Deloitte Center for Energy Solutions, 62 % of national respondents associate the word “clean” with natural gas from shale formations– making it the top association over other words.

47 % said “reliable”, 41 % said “domestic”, 40 % said “affordable” and 38 % said “abundant”.

This survey seems to indicate that positive perception of natural gas is growing rapidly, just like our supply of this abundant energy source.  Domestic dry natural gas production in the United States increased 27% from January 2006 to August 2011.  The primary reason for this extraordinary increase has come in the form of significant quantities of shale gas.  Today, gas from shale makes up 32 % of total daily gas production.

• 83 % of respondents in the survey agree that natural gas development can stimulate job growth in the United States.
• 79 % believe the development of natural gas resources can help revitalize the economies of the states and communities where shale gas is located.
• 47 % of national respondents believe shale is “extremely” or “very” impactful on energy independence.

The United States possesses a 100-year supply of natural gas and is the largest producer of this clean-burning energy source in the world.  If we develop this resource in a responsible manner, natural gas will play a key role in our nation’s energy future, and by extension our economic future.

The survey results point to the growing perception of the need for responsible development.

• 37 % of national respondents report being “not very” or “not at all” familiar with hydraulic fracturing – and 23 % “never heard of hydraulic fracturing”, the process used to extract natural gas from shale.
• 58 % of national respondents with at least some degree of familiarity with shale gas development are aware of potential water contamination issues.
• 49 % know about the potential for surface-land impact issues.
• 58 % believe the benefits outweigh the risks; and almost 25 % are unsure.

The survey consisted of 1,694 online interviews conducted in November 2011 with adults age 21 to 74 and examined three different audience segments: residents of areas where shale gas development is an established phenomenon, specifically Texas, Louisiana and Arkansas (537 respondents); residents of areas where shale is a newer phenomenon, specifically New York (89 respondents in New York City and 162 in western New York State) and Pennsylvania (243 respondents); and finally, the survey canvassed an additional 663 respondents in the United States nationally.

“Social media is a tricky play for utilities, as it is for other industries unaccustomed to such a transparent and uncontrolled form of communication with customers,” says senior analyst Neil Strother. “But there are ways to use the new social channels that benefit both the utility and the customer.”

There are definitely a group of utilities that have successfully embraced social media. The way they are doing this is by defining clear objectives, selecting the appropriate technologies for their individual strategies, and integrating social media with existing communication channels instead of having them function separately.

The report lists a number of good questions that it strives to address including:

• What are best practices a utility should use when embracing social media?
• How many customers are expected to use social media to engage their utilities over the next five years?
• How much will utilities spend on social media over the next five years?
• Who are the key players in the social media ecosystem that utilities need to understand?
• What lessons can be learned from case studies of utilities that have used social channels?

The report also offers strategies and best practices for utilities seeking to avoid mistakes and minimize risk. Company profiles are provided for key industry players and market forecasts are included through 2017 for utility spending on social media tools as well as the number of customers using social media to engage with utilities. You can find more information about the report here.

The resulting boon of domestic gas has reduced average imports via pipeline from Canada and LNG re-gasification terminals, both of which have decreased in volume year over year. We also see strong gas-in-storage volumes entering the winter season, with working gas reaching a record peak for a second year in a row.

At the same time, demand has increased 2.6 percent year-overyear as more gas was burned for power generation, utilized in the residential and commercial sector, and exported to Mexico. This balance has created a softer price environment with spot and near-month futures contracts trading in the low-to-mid $3 range in mid-December.

The fact is that the national supply portfolio is strong and consumers benefit. With that said, attention and concern to gas production, and in particular shale gas development, remain. This week additional public attention has been brought to hydraulic fracturing practices and drinking water quality in locations such as Wyoming, but the statements from the Environmental Protection Agency public are being strongly refuted by industry sources.

Time and additional scrutiny of the science will resolve the differences.

Visit this link to download the full Natural Gas Market Indicators.Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.