Category Archives: weather

Richard Meyer Natural Gas Market Indicators: Jan. 30, 2015

The idea of structural versus price-induced demand growth is playing itself out in the power generation market for natural gas this winter. Natural gas power burn has consistently pointed to increased volumes to start the first quarter of 2015 compared to 2014, at least in part due to lower natural gas acquisition prices, and as a result power demand has averaged 22.9 Bcf per day, 1.2 Bcf per day more than last January.

One cannot help but wonder with overt and subtle shifts in the power generation fleet for economic and environmental reasons across the country how much of any of these demand increases are being structurally built into normal gas demand.

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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Jake Rubin Understanding Your Natural Gas Bill

More than 177 million Americans use natural gas to cook a hot meal, heat their water or warm their houses. Many parts of the country have felt the chill of winter and that means folks are using more natural gas. The American Gas Association has developed a video to explain what goes into your natural gas bill.

Your bill is essentially comprised of three parts:

  1. Gas you used: Often, the largest part of your bill is based on the amount of natural gas you use each month. The United States has an abundance of clean natural gas and that has led to stable and affordable prices. Utilities do not make a profit on the gas they deliver to your home or business.
  2.  Delivery cost: The public utility commission, a group of elected or appointed officials, sets the rate that your utility can charge each month. Included in this cost is maintenance, upgrades of the pipes that deliver natural gas to your home or businesses and everything else that is needed to help ensure safe and reliable delivery of natural gas.
  3.  Local, state and federal taxes.

During the 2013-14 Winter Heating Season, the natural gas delivery system in the United States achieved historic levels of performance. More natural gas was delivered through more pipelines to more customers than ever before, and customer bills remained affordable. Residential customer bills increased only 10 percent on average from the prior winter – an increase mostly due to higher consumption.

AGA expects relatively warmer temperatures this winter based on information from the climate Prediction Center, which may lead to a reduction in demand. Natural gas prices are likely to be slightly higher, resulting in an increase in customer bills of about seven percent this winter.

Promise Delivered is an AGA study of the planning, preparation and performance of the natural gas system during the 2013-14 Winter Heating Season. Utilities work all year to prepare for the possibility of extreme temperatures and employ a portfolio approach to help ensure they can meet the needs of their customers at affordable prices on the coldest days of the year. Before last year’s extraordinary winter concluded, they were already preparing for this winter cycle.

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Tracy Burleson Bradford White Infiniti Tankless™ Water Heaters with SRT™ Scale Reduction Technology

Guest Blogger: Pam Long, Marketing Coordinator, Bradford White Corporation*

Next to heating and cooling systems, the second biggest energy user in an average American home is the water heater. The cost to operate a natural gas water heater is less than electric water heaters, on average, and can heat water twice as fast. This translates to consumers saving both money and time, something we all could use more of.

HE Infinity 8 v2 2 Bradford White Infiniti Tankless™ Water Heaters with SRT™ Scale Reduction TechnologyBradford White’s new Infiniti Tankless™ Water Heater Series featuring the exclusive SRT™ Scale Reduction Technology – available in both condensing and non-condensing models – combines the energy and space saving features of tankless water heaters with new technologies and designs that significantly reduce scale build-up, reduce maintenance, improve performance, and provide greater installation flexibility.

The SRT™ system utilizes multiple components to reduce scale. These components disturb water-flow and greatly reduce hotspots that allow scale to accumulate. The SRT™ system significantly reduces the incidence of scale build-up known to result in poor performance, pre-mature component or product failure, and ultimately additional maintenance costs for the consumer.

To minimize water temperature fluctuation during hot water usage, the Infiniti condensing model is equipped with an automatic and fully modulating bypass. Together with temperature sensors located throughout the unit, temperature stability throughout the draw remains consistent resulting in a better user experience.

Giving design engineers and installing contractors a wider array of venting options and configurations, the Infiniti condensing model is approved for use with PVC, CPVC, ABS and Polypropylene, and is available with an optional “up & out” concentric vent kit requiring only one penetration through the wall or roof.

Infiniti Tankless™ Water Heaters are ENERGY STAR® qualified and include both condensing and non-condensing residential models with 199,000 BTU inputs. Additional features include an easy-to-use, built-in digital control, built-in freeze protection, Low NOx emissions, an optional outdoor installation kit, and a limited 12-year warranty on the heat exchanger and a limited 5-year warranty on all parts.

Attendees of the National Association of Home Builders’ International Builders’ Show on January 20 through 22 in Las Vegas, NV can check out the new Infiniti Tankless™ Water Heaters as part of the American Gas Association exhibit booth. Make sure to follow AGA’s twitter page, @aga_naturalgas, and #IBSVegas for photos and updates throughout the show.

*Statements of fact or opinion in this blog post are the responsibility of Bradford White alone and do not imply an opinion or endorsement on the part of the American Gas Association.

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Chris McGill Natural Gas Market Indicators: Nov. 14, 2014

Prices for natural gas at Henry Hub remain above $4.15 per MMBtu for prompt-month contracts rising from nearer $4 at the October month-end close – not unexpected for a market anticipating winter heating season demand. With that said, the domestic underground storage position is strong (over 3.6 Tcf for the week ending November 7, 2014 in working gas) and daily dry gas production estimates are routinely averaging above 70 Bcf per day for the first time in history.

Storage injections are set to slow and reverse to withdrawals, while natural gas demand is inching up with the addition of modest home heating requirements. Analytically, one area of interest to industry watchers this coming winter may be examining demand trends in all sectors, looking at comparisons to the polar vortex winter of January-March 2014. What natural gas demand elements of that extraordinary winter are here to stay? Could there be conclusions drawn comparing the coming winter to that of last year? Might there be key signals in the industrial and power generation sectors? Time and creative analysis may tell.

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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