Even though summer temperatures have been warmer than normal on average this year, natural gas volumes to power generation remain below 2016 levels (down 2.9 Bcf per day year-to-date). Growth in gas exports has not been able to offset lower demand in both the power sector and residential/commercial, the latter of which is down 1 Bcf per day this year after a relatively mild winter. The result is that total lower-48 consumption of natural gas has been 1.9 Bcf per day less year-to-date in 2017 compared to the same period in 2016, per Bentek Energy.
Unpredictable events such as Hurricane Harvey also have an impact on the natural gas supply-demand balance in the short run. Hurricanes often require temporary production shut-ins, as Harvey does, but these events can also lead to demand reductions through cooler temperatures via the storm and reduction of economic output such as reduced manufacturing or refining during the duration of the storm.
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.