“The Scoop” –
United States experiences highest weekly increase in natural gas rig count in two years
The weekly natural gas rig count increased by 11 during the week ending October 14, 2016 according to Baker Hughes. There are now 105 active natural gas rigs in the United States.
“The Scoop” – The EIA is predicting a rise of 10% in US natural gas consumptions this winter heating season vs. last year. Last winter’s El Niño weather pattern resulted in winter temperatures that were 15% warmer than the previous 10-year average, thus a more normal winter is going to drive the demand.
“The Scoop” – November futures up slightly. At the Nymex, the October 2016 contract expired last Wednesday at $2.952/MMBtu. The November 2016 contract increased to $3.041/MMBtu, up 4¢ Wednesday to Wednesday. The price of the 12-month strip averaging November 2016 through October 2017 futures contracts climbed 7¢ to $3.183/MMBtu.
“The Scoop” – Natural gas spot prices fell at most locations this report week (Wednesday, September 21 to Wednesday, September 28). The Henry Hub spot price fell from $3.14 per million British thermal units (MMBtu) last Wednesday to $2.98/MMBtu yesterday.
LNG (Liquified Natural Gas) Update – Sabine Pass liquefaction terminal begins it’s first maintenance. Since the first cargo left Sabine Pass on February 24, an estimated 113 Bcf of LNG has been exported on 33 tankers from Trains 1 and 2 to 12 countries worldwide. More than half of the U.S. LNG exports so far were shipped to South America and the Caribbean (Brazil, Argentina, Chile, and the Dominican Republic), followed by Asia (India and China), the Middle East (United Arab Emirates, Kuwait, and Jordan), a small volume to Europe (Portugal and Spain), and Mexico. Sabine Pass is a six-train facility with a capacity of 0.59 Bcf/d for each train. Trains 4 and 5 are under construction, and Train 6 has been fully permitted.Read More
“The Scoop” – High natural gas summer storage inventories contribute to low prices and increased power burn
With a late-summer heat wave across much of the eastern half of the country, natural gas consumed for power (power burn) reached 36.2 billion cubic feet (Bcf) on Wednesday, according to PointLogic data. The current high levels of power burn follow record gas consumption for power over the summer. From June through August, power burn averaged 35.2 Bcf per day, 9% higher than the same months last year, and 23% higher than the five-year (2011-15) average. The total number of cooling degree-days (CDD) from June through August were 12% above the same period last year, and 24% above normal for the period.Read More
“The Scoop” – Spot prices generally rise. This report week the Henry Hub spot price rose 6¢ from $2.71/MMBtu last Wednesday to $2.77/MMBtu yesterday. Price increases near the end of the report week may have been the result of forecasts for warmer weather in the coming days. At the Chicago Citygate, prices increased 10¢ from $2.66/MMBtu last Wednesday to $2.76/MMBtu yesterday. Similarly, prices at PG&E Citygate in California gained 10¢, going from $3.15/MMBtu last Wednesday to $3.25/MMBtu yesterday.Read More
“The Scoop” – Natural gas spot prices were mixed this report week (Wednesday, August 10, to Wednesday, August 17), but overall price changes were small at most locations. The Henry Hub spot price fell from $2.73 per million British thermal units (MMBtu) last Wednesday to $2.71/MMBtu yesterday.Read More
“The Scoop” – Prices fell through the week with a solid injection to natural gas storage and Consumption levels fell. During the report week, total U.S. consumption of natural gas fell by 1%, according to data from PointLogic. Power burn for electricity generation declined by 1% week over week. Industrial sector consumption stayed constant, averaging 19.4 Bcf/d. In the residential and commercial sectors, consumption fell 7% from last week’s levels, averaging 7.2 Bcf/d. Natural gas exports to Mexico went down 2Read More