Category Archives: weather

Chris McGill Natural Gas Market Indicators: April 11, 2014

Net daily injections of working gas into underground storage have signaled the beginning of the 2014 storage build up, according to Bentek Energy LLC. Natural gas directed toward power generation has fallen, as it normally does during the shoulder swing from winter to summer, and overall demand has moderated, also.

If history holds to form, May and June will be very strong months for weekly storage injections and market watchers will direct their attention to the forward futures strip for a determination as to whether significant upward pressure on natural gas prices will develop as a result of summer cooling requirements and storage injections.

The Energy Information Administration is now showing an expected volume build to slightly less than 3.5 Tcf prior to the beginning of the 2014-15 winter heating season. So many prognostications – now we will see which expectations actually materialize.

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: March 14, 2014

While it may not feel like it, the winter heating season is technically approaching its close.

Even with short-term local daily cash price peaks, natural gas futures have remained remarkably stable, generally in the $4.25 to $4.75 per MMBtu range going as far out as 2017. This reflects confidence in the ability of domestic production to meet weather-induced and growing institutional demand for natural gas in the industrial, power generation and weather sensitive small volume customer sectors.

These observations continue to support the takeaway from the Natural Gas Market Indicators publication two weeks ago which stated that the nation’s natural gas supply portfolio has handled persistent cold and major weather events very well this winter heating season.

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: February 28, 2014

Natural gas March futures closed at $6.09 per MMBtu on February 19 and went even higher afterwards before falling once again. This could seem like a dramatic rise and psychological threshold for natural gas prices, but there are some important facts to keep in mind for context. First, it has been a very cold winter with persistent low temperatures. Records for highest month, week and day for total natural gas consumption were in January.

This January also saw the highest winter-month electricity load, ever. For its part, natural gas volumes to power generation for a January were the highest ever recorded, also. February natural gas demand is 8.6 percent above last year while storage volumes are 35 percent below the five-year average. With that said, winter price movements have been muted compared to history when similar piled-on events have occurred. What then is our takeaway? That the nation’s natural gas supply portfolio, so far, has handled persistent cold and major weather events very well.

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: February 13, 2014

A number of winter season records were set in January 2014, including volumes directed to power generation. According to Bentek Energy LLC, average daily consumption of natural gas for power of 21.4 Bcf in January was an all-time high for the month, as was the volume of 31.1 Bcf for a single day of gas-fired generation on January 7. These facts point to the institutional load increases that are building for power generation within the natural gas energy sector.

Even price has not adversely impacted the growth in gas to power generation during winter months, inasmuch as February 2014 Henry Hub cash has averaged about $5.84, which is higher than February 2012 and 2013 cash prices by 141 and 75 percent, respectively, according to Bentek Energy LLC. In addition, January 2014 exhibited the highest electric load for a winter month ever required from all generation sources, according to Bentek.

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, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

Posted in environment, Natural Gas, technology, weather, winter heating | Leave a comment