Chris McGill Natural Gas Market Indicators: August 11, 2016

The average volume of natural gas flowing to power generators year-to-date in 2016 exceeds that of 2015 by about six percent, recognizing that 2015 was a record year for gas to power generation in and of itself. By comparison, consumption in the residential and commercial sectors has averaged 3.0 Bcf per day lower in 2016 (down 11 percent) compared to 2015 due primarily to the incredibly mild winter across the country during the first quarter of 2016, resulting in a total demand picture for natural gas that is down about two percent from the prior year.

To balance the market, production had to fall and has done so by decreasing about 300 MMcf per day on average year-to-date. Balance – that is the theme for this summer – is captured by pricing movements, which started much closer to $2 per MMBtu earlier in the year, rose to near $3 for futures contracts at Henry Hub and have since retreated. Balance – an appropriate theme as we watch the Olympic gymnastics competition from Rio.

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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Jackie Bavaro Natural Gas Utilities Working through Differences and Overcoming Cultural Barriers

The cover story for the August/September issue of American Gas magazine titled, “Working through Differences,” explores how a diverse workforce can encourage innovation and overcome cultural barriers, especially as women and minorities begin to make up a large part of the energy workforce.

A report commissioned by the American Petroleum Institute indicates that by 2035, the energy workforce, with its retirements and expanded growth in the industry, will create 1.9 million direct jobs. More than a half million of these new jobs are projected to be filled by minorities over the next decade and a half.

augcoverFostering a dynamic and inclusive work environment starts with attracting talented and diverse employees. To that end, Con Edison of New York has set the groundwork for new diversity and inclusion strategies in 2015. Recently, the company has helped area colleges with large minority populations align its courses with industry needs and even helped found Energy Tech, a grade 9 to 12 career technical school in Queens, New York that focuses on STEM classes. Con Edison has also worked with National Grid to create a natural gas boot camp for returning veterans looking for entry-level work and mid-level mechanic positions. It has also sponsored internships for college and high school students with 114 co-op students hired in 2015.

In addition, Nicor Gas has been working on bringing more women into the engineering field. The company recently hosted the Society of Women Engineers at its Naperville, Illinois office to discuss why women are still vastly underrepresented in the engineering field, and even more so in the gas and oil industries. Cultural shifts at companies where diversity is woven into the fabric have been a key component in developing a successful method to embracing change in the workplace.

Take for example Public Service Electric and Gas Co., who have partnered with other New Jersey utilities and organizations to offer a career awareness program, developed by the Center for Energy Workforce Development, called Women in Sustainable Employment Pathways. This program helps participants prepare for fields in the trades that they may not have seen themselves in previously. Women work on resumes, team building, conflict resolution, networking, interviewing and applications throughout a 40-hour course and then interview for a desired position at the end of the program.

One advantage of having an inclusive workforce is improved customer service when dealing with an increasingly diverse customer base. This lends itself to fostering different perspectives among leadership and ultimately leads to better solutions for ratepayers. Please let us know in the comments below how your company is implementing ways to create a more inclusive and diverse work environment.

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Richard Meyer Natural Gas Market Indicators: July 28, 2016

Nearly 10 U.S. nuclear reactors have announced intent to retire through 2019. The nearly 9 GW of nuclear capacity these plants represent has a gas burn equivalent of 1.35 Bcf per day, according to estimates from Bloomberg New Energy Finance. This represents the potential upside for natural gas as it fills the gaps created by the shuttering nukes.

Looking at the more immediate, natural gas to power generation reached 41 Bcf per day at times during July. When that occurs net storage injections are usually reduced and daily volumes of added working gas fall into low single digits. Even for a day or two national inventories can indicate as much gas coming out of storage as going in or even a net withdrawal (estimated small net withdrawal by Bentek Energy for July 25).

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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Jackie Bavaro #FuelingOurCommunities: Helping Those in Need

Natural gas utilities across our country continue to make impressive strides when it comes to #FuelingOurCommunities. Not only are our member companies committed to delivering natural gas safely and reliably to the more than 177 million Americans who depend on it, they also place great pride in their commitment to service for every member of their communities. This month we are spotlighting Consumers Energy and its inspiring effort to combat homelessness and extend a helping hand to those in need.

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Consumers Energy volunteers participating in West Michigan United Way’s Food from the Heart initiative.

In June, Consumers Energy welcomed 184 new and returning interns at their annual summer luncheon. In order to provide a true understanding of the philanthropic nature that exists at the company, interns are encouraged to take part in Consumers Energy 9th annual Intern Challenge, a month-long service project designed specifically for interns to give back to their local communities throughout the state. This year, interns volunteered at a variety of nonprofit organizations including Habitat for Humanity, Kalamazoo Loaves and Fishes, Jackson Interfaith Shelter and Heart of West Michigan United Way, participating in the Food from the Heart Initiative. Participants remarked on how rewarding they found this initiative; last year, interns collected 3,500 items for food pantries and assembled 130 ready-to-prepare meals that fed 260 people eligible for assistance across Kalamazoo County.

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Consumers Energy co-workers and interns building houses to support Michigan’s Habitat for Humanity.

In addition, in 2015, Consumers Energy raised more than $215,000 to go towards Michigan nonprofits on behalf of its 547 volunteers. Specifically, the company provided more than $105,000 to 30 higher educational institutions, 16 community foundations, 55 local food banks and 14 homeless shelters. Since 2001, Consumers Energy has contributed more than $955,000 to Habitat for Humanity and pledged an additional $200,000 from the Consumers Energy Foundation for its neighborhood revitalization initiative. The company believes this is a solid foundation for a long-term investment in improving the communities they work and live in.

AGA commends the remarkable efforts Consumers Energy is making to help their communities become a more vibrant and welcoming place. Please use the hashtag #FuelingOurCommunities to highlight how you and your company are giving back so we can promote your good work on our social media channels. Next month, we will be highlighting volunteer efforts geared toward taking care of the environment. Please share your initiatives with us to be featured on the True Blue Natural Gas blog.

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