Richard Meyer Natural Gas Market Indicators: Oct. 15, 2014

The supply build for the United States is strong. Increased dry gas production coupled with relatively cooler weather this summer have bolstered natural gas storage injections and strengthened underground stocks that were at decadal lows following last winter’s polar vortex.

Since the end of March, injections of natural gas into underground storage have been at a record pace and well above the five-year average. Even with the rapid rate of injections, the deep starting point that stocks began the injection season still means storage volumes are about 10 percent below last year. Despite this, production is strong too. October dry gas volumes are 5.3 Bcf per day higher than last year, an incredible eight percent gain.

With production and storage factors considered, the strong supply outlook is reflected on a relatively narrow NYMEX natural gas pricing band between $3.85 and $4.00 for the upcoming winter heating season.

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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Kathryn Clay Our Focus on Safety Benefits the Environment

This article originally appeared on the SXSW Eco website as a special guest blog post by AGA Vice President of Policy Strategy Kathryn Clay.

SXSW Eco logo Our Focus on Safety Benefits the EnvironmentAccording to the U.S. Department of Transportation, the pipeline network that carries natural gas to more than 177 million Americans is the safest energy delivery system in the nation. Even with the historically excellent performance of our distribution network, safety is our top priority and natural gas utilities remain vigilant and committed to continually upgrading this crucial infrastructure. Natural gas utilities are regulated by state utility commissions which are charged with balancing the need for investments in infrastructure to provide safe and reliable service with ensuring affordable energy bills for customers and fair returns on equity that will attract capital at reasonable costs.

Over the course of the last three decades, natural gas utilities have installed modern plastic pipes at a rate of 30,000 miles per year and installed catholically protected coated steel mains at 1,500 miles per year, both connecting new customers and upgrading existing pipeline infrastructure. Pipes that may no longer be fit for service are being replaced with ones made from more modern materials. This concerted effort by America’s natural gas utilities to upgrade and modernize our nation’s pipeline network to enhance safety has contributed to a declining trend in emissions from natural gas distribution systems.

According to the U.S. Environmental Protection Agency’s 19th Annual Inventory of U.S. Greenhouse Gas Emissions and Sinks released in April 2014, only 0.24 percent of produced natural gas is emitted from the delivery systems operated by local natural gas utilities. In fact, natural gas emissions from utility-owned distribution systems have dropped 22 percent since 1990. Moreover, nearly 90 percent of the emissions declines from distribution systems since that year are due to pipeline replacements.

The effort to modernize infrastructure by replacing pipe no longer fit for service will continue to grow. Of the 38 states that have accelerated infrastructure replacement mechanisms, 9 states and the District of Columbia were approved in the past two years. As those programs ramp up, we will see more investment in enhancing safety and further emissions declines.

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Lisa Dundon October Marks National Cybersecurity Awareness Month 2014

In this day and age, nearly every aspect of our lives has become digital. Even when we’re not directly connected to the Internet, our critical infrastructure — the vast, worldwide connection of computers, data and websites supporting financial transactions, transportation systems, healthcare records, emergency response systems, personal communications and more — is and it impacts us all.

National Cybersecurity Awareness Month (NCSAM) – celebrated each October – was created to help engage and educate public and private sectors about the importance of staying safe online through special events and initiatives. Since its inception 11 years ago, NCSAM has grown exponentially, and information about online safety continues to adapt to the changing threats that exist, reaching consumers, small and medium-size businesses, corporations, educational institutions and people across the nation.

banner 300x250 October Marks National Cybersecurity Awareness Month 2014

According to the National Cybersecurity Alliance (NCSA), securing cyberspace, including the devices and networks we use, is a shared responsibility. Individual actions have a collective impact and using the Internet safely makes it more secure for everyone. If each person does their part by implementing stronger security practices, raising community awareness, educating family and friends, and training employees, our digital society will be safer and more resistant from cyber-attacks.

This year, each week of NCSAM has a theme to help focus on core issues:

  • Week 1 (October 1-3) – Stop. Think. Connect.
  • Week 2 (October 6-10) – Secure Development of IT Products
  • Week 3 (October 13-14) – Critical Infrastructure and The Internet
  • Week 4 (October 20-24) – Cybersecurity for Small- and Medium-Sized Businesses and Entrepreneurs
  • Week 5 (October 27-31) – Cybercrime and Law Enforcement

AGA will once-again be an active participant of NCSAM by posting blog articles related to the weekly themes, as well as daily content on our Facebook and Twitter pages using the official hashtag, #NCSAM. Let us know how your organization is informing utility customers about how to stay safe online in the comments section below. AGA will feature your efforts on our blog and social media accounts.

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Lisa Dundon AGA Members Rank High In J.D. Power Customer Service Satisfaction Survey

Natural gas customer satisfaction of their utility service has grown positively for the third consecutive year, according to the 2014 Gas Utility Residential Customer Satisfaction Study, created by J.D. Power and Associates.

The recently released study measured residential customer satisfaction with gas utility companies by looking at six factors: billing and payment; price; corporate citizenship; communications; customer service; and field service.

Large (125,000 and 399,999 residential customers) and midsize (400,000 or more residential customers) utility companies were ranked in four geographic regions: East, Midwest, South and West. American Gas Association (AGA) members UGI Utilities, DTE Energy, Oklahoma Natural Gas and NW Natural ranked highest among large utilities, while Columbia Gas of Pennsylvania, Madison Gas and Electric, TECO Peoples Gas and Colorado Springs Utilities ranked highest among midsize utilities.

Other AGA members who were ranked second or third place in their respective utility size and region include: New Jersey Natural Gas, National Fuel Gas Company, Rochester Gas & Electric, Consumers Energy, MidAmerican Energy, Alliant Energy, CenterPoint Energy-South, Texas Gas Service, South Carolina Electric & Gas, Virginia Natural Gas, Southern California Gas Company and Southwest Gas.

According to the study, communication from gas utilities informing customers about efforts to keep energy costs low, as well as demonstrating leadership in the community are key drivers of satisfaction. The study, fielded between September 2013 and July 2014, was based on nearly 70,000 responses from residential customers of 83 large and midsize gas utilities across the U.S.

AGA utility members deliver clean and affordable natural gas to more than 177 million Americans, and are true partners in the communities they serve, some for as many as 100 years.

To learn more about the 2014 Gas Utility Residential Customer Satisfaction Study, click here.

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