Category Archives: weather

Richard Meyer Natural Gas Market Indicators: July 15, 2014

As the northern hemisphere summer is half way through, perhaps it is a good time to take stock of where we are at.

On the supply front, production is as strong as it has ever been, with near record-breaking levels of dry gas produced at volumes more than 68 Bcf per day since June. Supplies directed toward storage have been similarly robust with a record setting eight straight weeks of 100+ Bcf injections since May. In other words, production is solid and supplies are rebuilding.

On the demand side, cooler summer temperatures compared with 2013 have eased power burn demand this July by nearly 2 Bcf. Industrial and residential-commercial demand are up slightly, as well as exports to Mexico. Therefore, the decline in July demand overall relative to last year is only 0.6 Bcf per day.

The result of this supply-demand balance is a natural gas price at Henry Hub of $4.11 per MMBtu – well below where the summer season began. This suggests that the market sees a sturdy supply portfolio that is able to meet both short-term demand pulls and seasonal storage obligations as operators refill for next winter. In other words, the market is behaving in an expected fashion.

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: June 27, 2014

The U.S. Energy Information Administration reminded us this month that the world’s first purpose-built, ocean-going LNG carrier, the Methane Princess, was placed into service 50 years ago in June 1964. That ship, and her sister vessel, the Methane Progress, traveled primarily between Algeria and the UK. Today, there are 357 such ships generally averaging five times the capacity of the original transporter.

Domestic production remains strong and growing, and storage injections’ aggressive poise has coincided with a slight softening of prices. Following one of the coldest winters in decades and the strongest demand pull ever, the physical market appears to be adjusting accordingly.

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: June 13, 2014

Natural gas pricing for July delivery has kicked around the $4.50 to $4.60 per MMBtu mark so far this June. The NYMEX strip shows natural gas prices at Henry Hub trading below $4.70 through this coming winter then falling near $4.10 by next year’s shoulder season.

Crude oil prices have climbed as summer in the northern hemisphere approaches. At $104 per barrel, the West Texas Intermediate marker for prompt-month delivery trades $3 higher than averaged in April. European Brent trades at $109 per barrel or a $4+ premium to WTI.

Relatively mild weather continues to persist across the lower 48 states, bringing with it strong injections of gas to storage. While temperatures in absolute terms have been relatively mild, the count of cooling degree days have been about 23 percent warmer than normal across the country. Regionally, the Northeast has been cooler than normal while the rest of the country has been warmer.

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 Calling on Congress to Help Low-Income Natural Gas Customers

Senate to Set LIHEAP Funding Levels This Week

This week, the U.S. Senate will make key decisions regarding the ability of vulnerable energy customers to meet their basic home heating and cooling needs. Since 2010, funding for the Low-Income Home Energy Assistance Program (LIHEAP) has dropped by nearly $2 billion and the President’s budget for Fiscal Year (FY) 2015 calls for just $2.8 billion – less than half of the $5.1 billion allocated in FY2010. Even when LIHEAP was funded at $5.1 billion, that amount was only enough to assist one in five eligible Americans.

Today, June 10, the Labor, Health and Human Services, Education and Related Agencies Subcommittee, which funds the LIHEAP program, will mark up their Fiscal Year 2015 appropriations spending bill, setting target funding levels for LIHEAP and other critical programs. The Senate Full Appropriations Committee is then expected to take up the bill on Thursday, June 12.

The National Energy and Utility Affordability Coalition (NEAUC), AGA and low-income energy assistance supporters are calling on Congress to help ensure that all Americans can access essential energy to support their daily needs. AGA has signed a multi-party NEAUC letter, which will be delivered to every member of the House and Senate Appropriations Committees.

Are you a low-income assistance organization or a utility representative? Sign the multi-party letter here.

You can help spread the word through social media or by contacting your representatives. AGA and NEAUC are sharing messages on Twitter at @AGA_naturalgas and @liheapcampaign using the hashtag #LIHEAP. Make sure to mention @SenateApprops in your tweets.

LIHEAP funding FY 2004 2014 Calling on Congress to Help Low Income Natural Gas Customers

Photo Credit: Center for American Progress

With U.S. Census data showing that more than 46 million Americans live in poverty and that the average low- and fixed-income family spends 13.5 percent of its annual income on energy – nearly twice the 7.2 percent spent by the average U.S. household – the need for sufficient LIHEAP funding is great.

AGA and America’s local natural gas utilities are committed to helping all customers meet their energy needs through efficiency programs and bill payment assistance. In 2012, utilities contributed nearly $3.7 billion in assistance to low-income customers – roughly equal to the $3.47 billion provided in LIHEAP funding that year. This assistance included discounted rates, arrearage forgiveness, weatherization and efficiency programs, and support to charitable organizations that provide resources for customers in need. Utilities also spent $1.1 billion in natural gas efficiency programs for all customers in 2012, helping homes and businesses reduce their typical annual natural gas usage by an average 16 percent and save $117 in annual energy costs.

You can find more information about LIHEAP in a 2014 report, Investing in LIHEAP, and individual state factsheets detailing funding scenarios, demographic information and the number of households served.

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