Despite the cold weather and commensurably higher levels of demand, strong gas production and solid working gas inventories are helping meet consumer requirements this winter. Even with national demand over 99 Bcf per day to begin February, consumers have benefited from stable gas prices and a robust national supply portfolio, which has been fundamentally based on strong domestic production, gas imports from Canada, and LNG shipments to a lesser degree. In previous years, price increases have resulted from supply/production limits, such as those following the hurricanes of 2005.
Today, the national supply picture remains solid with temporary price spikes attributable to transportation capacity constraints in certain regions, not commodity prices. However, even good national news can yield to regional challenges. For example, severe weather in West Texas, rolling electricity blackouts, and high consumer demand throughout the southwest have impeded flows of gas into New Mexico in recent days – a not so gentle reminder of the influences of nature on consumers and markets.
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.