Category Archives: winter heating

Richard Meyer Natural Gas Market Indicators: Sept. 12, 2014

Total natural gas supply in the United States (domestic production less natural gas liquids extraction and other shrink, plus net imports from Canada and very minor imports of LNG) has been running at about 74-75 Bcf per day in September with total demand (consumption) in the high 50s to low 60s, according to Bentek Energy.

That means that double digit volumes of natural gas have been available for underground storage injections – and that trend has continued for the first half of September. Sustaining that trend could push underground working gas inventories to about 3.5 Tcf to start the winter heating season. With domestic production running 4 Bcf per day higher than this time last year, that adds up to a strong supply position entering the winter.

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: July 31, 2014

The end of July has brought with it softening natural gas prices, the result of a confluence of supply and demand elements. Only a few months ago, some analysts questioned whether natural gas storage levels would be able to make a comeback following an 11-year record low for inventories at the end of the winter season. Today, we see natural gas volumes injected into storage at rates not seen in more than a decade and prices in the sub $4 range. Modest temperatures, seasonally low power generation load requirements, and record natural gas production are all ingredients into this summer’s recipe for relatively low Henry Hub prices and the supply position in which the country now finds itself immersed. That said, there still remains two months of summer, three months in the underground storage injection season, and an Atlantic hurricane season that has just gotten underway. Factors to keep an eye on include an uptick in temperatures; natural gas requirements for power generation; dry gas production flows; and supply issues related to disruptive weather events, such as storms in the Gulf of Mexico. However, even if one or more of these possibilities materializes, the US is still in a strong supply position – a fact that the market may be taking into account.
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 and Rig Counts.
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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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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