This August has begun with natural gas to power generation volumes 5.0 Bcf per day on average below that in August 2016. Suffice to say, the record highs for natural gas consumption in the power sector during 2016 may not be matched this year. Interestingly, it is the industrial sector that is up about 0.4 Bcf per day this August compared to last and up 0.2 Bcf per day year-to-date to 21.2 Bcf daily. Demand in the residential sector is down 0.9 Bcf per day year-to-date making sector demand (without including pipeline and liquefied natural gas exports) about 3.7 lower in 2017 compared to 2016.
Recent forecasts from the National Oceanographic and Atmospheric Administration expect warmer than normal temperatures for the country except the desert southwest for August through November. As cooling degree data stands now, all regions of the country have been warmer than normal since May 2017 except for the East and West North Central, which has been slightly cooler. In aggregate, New England and Pacific regions have deviated the furthest from normal with 21.9 percent and 56.2 percent more cooling degree days, respectively, recorded since early May 2017. With that said, much of the country was cooler than normal last week and the week before, so is that a trend? Only time will tell.
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.