Relative market stability remains a dominant theme within the national natural gas market. Working gas storage volumes are above the five-year average, as well as within percentage points of closing the early season gap in comparison to 2012. Coupled with still-growing domestic production volumes and an uneventful tropical storm season for the coastal production regions of the United States thus far, preparations for the coming winter appear robust.
Overall summer temperatures have been higher than normal, but with natural gas acquisition prices about 75 cents per MMBtu higher than last year, volumes of natural gas to power generators have slipped nearly 14 percent year to date compared with one year ago.
For the first six months of 2013, natural gas electricity generation dropped 14 percent. Coal filled about 4/5ths of that generation gap, while renewable electricity generation – including hydro – made up most of the difference. Despite the swing in natural gas volumes to power generation, prices remain relatively low and stable.
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.