Natural Gas
Natural Gas Update
Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 89 Bcf (billion cubic feet) for the week ending May 17, 2013.
Inventories are at 2,053 Bcf, which is down 24.9% or 680 Bcf from last year and 84 Bcf below the 5-year average or 3.9%.
Natural gas spot prices increased at most trading locations during the report week (Wednesday, May 15 – Wednesday, May 22). The Henry Hub spot price increased from $4.03 per million British thermal unit (MMBtu) last Wednesday to $4.16 per MMBtu yesterday.
At the New York Mercantile Exchange (Nymex), the price of the near-month (June 2013) natural gas futures contract increased from $4.070 per MMBtu last Wednesday to $4.186 per MMBtu yesterday.
Working natural gas in storage increased to 2,053 billion cubic feet (Bcf) as of Friday, May 17, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 89 Bcf for the week moved storage levels 680 Bcf below year-ago levels, and 84 Bcf below the 5-year average.
The natural gas rotary rig count, as reported by Baker Hughes Incorporated, increased by 4 units to 354 as of Friday, May 17. The oil rig count fell by 4 units to 1,408.
The weekly average natural gas plant liquid composite price for last week (Monday, May 11 – Friday, May 17) decreased 15 cents per MMBtu, or about 2 percent, over the previous week to $9.29 per MMBtu. Ethane and propane spot prices are both down 2 percent for the week, driving the decrease in the composite price.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.381 MMBtu $4.401 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 99 Bcf (billion cubic feet) for the week ending May 10, 2013.
Inventories are at 1,964 Bcf, which is down 26.1% or 694 Bcf from last year and 83 Bcf below the 5-year average or 4.1%.
Natural gas spot and futures prices generally increased at most trading locations during the report week (Wednesday, May 8 – Wednesday, May 15). The Henry Hub spot price increased from $3.86 per MMBtu last Wednesday to $4.03 per MMBtu yesterday.
At the New York Mercantile Exchange (Nymex), the price of the near-month (June 2013) natural gas futures contract increased from $3.978 per MMBtu last Wednesday to $4.070 per MMBtu yesterday.
Working natural gas in storage increased to 1,964 billion cubic feet (Bcf) as of Friday, May 10, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 99 Bcf for the week moved storage levels 694 Bcf below year-ago levels, and 83 Bcf below the 5-year average.
The natural gas rotary rig count, as reported by Baker Hughes Incorporated, decreased by 4 units to 350 as of Friday, May 10. The oil rig count rose by 9 units to 1,412.
The average NGPL composite price increased about 6 cents, or about 1 percent, over last week to $9.44 per MMBtu.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.114 MMBtu $4.177 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 88 Bcf (billion cubic feet) for the week ending May 3, 2013.
Inventories are at 1,865 Bcf, which is down 28.3 % or 737 Bcf from last year and 99 Bcf below the 5-year average or 5%.
Both spot and futures prices posted declines this report week (Wednesday, May 1 – Wednesday, May 8). The Henry Hub spot price decreased from $4.30 per million British thermal units (MMBtu) last Wednesday to $3.86 per MMBtu yesterday. Most price points across the country experienced similar declines.
The June 2013 New York Mercantile Exchange (Nymex) contract also declined, from $4.326 per MMBtu last Wednesday to close at $3.978 per MMBtu yesterday.
Working natural gas in storage increased last week to 1,865 Bcf as of Friday, May 3, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 88 Bcf for the week put storage levels 737 Bcf below year-ago levels, and 99 Bcf below the 5-year average.
The Baker Hughes Incorporated natural gas rotary rig count decreased by 12 units, from 366 to 354 as of Friday, May 3. The average oil rig count rose by 22 units to 1,403.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.170 MMBtu $4.225 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 43 Bcf (billion cubic feet) for the week ending April 26, 2013.
Inventories are at 1,777 Bcf, which is down 30.9% or 795 Bcf from last year and 118 Bcf below the 5-year average or 6.2%.
Natural gas prices rose following declines earlier in the report week (Wednesday to Wednesday), except at Algonquin Citygate. The Henry Hub closed at $4.30 per million British thermal units (MMBtu) yesterday, up 5 cents and 1.2 percent for the week, after declining to $4.16 per MMBtu on Friday, April 26.
At the NYMEX, the May 2013 contract also declined through Friday, April 26, to $4.152 per MMBtu. It then traded up 5.8 percent to $4.392 per MMBtu on Monday, April 29, its final day of trading. The near-month (June) NYMEX contract finished trading yesterday at $4.326 per MMBtu, 3 cents above the Henry Hub spot price.
Working natural gas in storage increased last week to 1,777 Bcf as of Friday, April 26, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 43 Bcf for the week put storage levels 795 Bcf below year-ago levels, and 118 Bcf below the 5-year average.
The Baker Hughes Incorporated natural gas rotary rig count decreased by 13 units, from 379 to 366 as of Friday, April 26. The average oil rig count rose by 10 units to 1,381.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.222 MMBtu $4.328 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 30 Bcf (billion cubic feet) for the week ending April 14, 2013.
Inventories are at 1,734 Bcf, which is down 31.8% or 807 Bcf from last year and 94 Bcf below the 5-year average or 5.1%.
Natural gas prices were nearly flat across the report week (Wednesday to Wednesday). Many price points increased by just a few cents per million British thermal units (MMBtu), with the exception of Northeastern points, which rose more substantially. The Henry Hub closed at $4.25 per MMBtu yesterday, up 1 cent for the week.
The May 2013 New York Mercantile Exchange (Nymex) contract fell slightly, from $4.214 per MMBtu last Wednesday to close at $4.166 per MMBtu yesterday.
Working natural gas in storage increased last week to 1,734 Bcf as of Friday, April 19, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 30 Bcf for the week put storage levels 807 Bcf below year-ago levels, and 94 Bcf below the 5-year average.
The Baker Hughes Incorporated natural gas rotary rig count increased by 2 units, from 377 to 379 as of Friday, April 19. The average oil rig count fell by 16 units to 1,371.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.322 MMBtu $4.321 MMBtu
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Natural Gas Update
Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 31 Bcf (billion cubic feet) for the week ending April 12, 2013.
Inventories are at 1,704 Bcf, which is down 31.8% or 794 Bcf from last year and 74 Bcf below the 5-year average or 4.2%.
Natural gas prices increased moderately at most major trading hubs for the report week (Wednesday to Wednesday) with the exception of the prices in the Northeast. Henry Hub prices increased from $4.07 per million British thermal units (MMBtu) last Wednesday to $4.24 per MMBtu yesterday, while natural gas prices at Algonquin Citygate for delivery into Boston decreased from $4.94 per MMBtu to $4.65 per MMBtu.
The May 2013 New York Mercantile Exchange (Nymex) contract increased by 13 cents, from $4.085 per MMBtu last Wednesday to close at $4.214 per MMBtu yesterday.
Working natural gas in storage rose to 1,704 billion cubic feet (Bcf) as of Friday, April 12, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 31 Bcf for the week moved storage levels 794 Bcf below year-ago levels, and 74 Bcf below the 5-year average.
The Baker Hughes Incorporated natural gas rotary rig count increased by 2 to 377 active units on the week ending
April 12, 2013. The oil-directed rig count increased by 30 to 1,387 units.
In The News: Many key uncertainties in the AEO2013 projections are addressed through alternative cases
The Energy Information Administration’s (EIA) Annual Energy Outlook 2013 (AEO2013) presents long-term projections of energy supply, demand, and prices through 2040, based on results from EIA’s National Energy Modeling System. This Monday marked the first stage of its release. This included publication of the “Market trends” section, which summarizes projections for energy markets under a Reference case, which assumes current laws and regulations, as well as alternative scenarios, including higher and lower levels of macroeconomic growth and resource availability.
Future levels of natural gas prices depend on many factors, including macroeconomic growth rates and expected rates of resource recovery from natural gas wells. Higher rates of economic growth lead to increased consumption of natural gas (primarily in response to higher levels of housing starts, commercial floor space, and industrial output), causing more rapid depletion of natural gas resources and a more rapid increase in the cost of developing new production, which push natural gas prices higher. The converse is true in the Low Economic Growth case.
A lower rate of recovery from oil and gas wells implies higher costs per unit and higher prices. A higher rate of recovery implies lower costs per unit and lower prices. In comparison with the Reference case, the Low Oil and Gas Resource case assumes lower estimated ultimate recovery (EUR) from each shale well or tight well. The High Oil and Gas Resource case represents a more extreme case, with higher estimates for recoverable crude oil and natural gas resources in tight wells and shale formations and for offshore resources in the lower 48 states and Alaska.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.524 MMBtu $4.433 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net withdrawal of 14 Bcf (billion cubic feet) for the week ending April 5, 2013.
Inventories are at 1,673 Bcf, which is down 32.5% or 804 Bcf from last year and 66 Bcf below the 5-year average or 3.8%.
Both spot and futures prices increased during the report week (Wednesday, April 3 to Wednesday, April 10). The Henry Hub spot price increased from $4.00 per million British thermal unit (MMBtu) to $4.07 per MMBtu.
Mirroring movements in the spot price, the New York Mercantile Exchange (Nymex) near-month (May 2013) futures price increased from $3.900 per MMBtu last Wednesday to $4.085 per MMBtu yesterday.
Working natural gas in storage declined to 1,673 Bcf as of Friday, April 5, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). An implied storage withdrawal of 14 Bcf for the week moved storage levels 804 Bcf below year-ago levels, and 66 Bcf below the 5-year average.
The natural gas rotary rig count was 375 as of Friday, April 5, according to data reported by Baker Hughes Incorporated. This represents a decline of 14 from the previous week, and natural gas rigs are at their lowest level since 1999. Oil rigs, on the other hand, increased by 3 to 1,357.
In the News: Net storage withdrawals reach record levels during a cold March 2013
Net lower 48 working natural gas storage withdrawals for the four full weeks of March 2013 (weeks 9 through 12 of the calendar year) averaged 99.0 billion cubic feet (Bcf). This was the highest average weekly net withdrawal recorded during this four-week period since the Weekly Natural Gas Storage Report began recording inventory levels in 2002. This reflects net withdrawals that are more than three times greater than the five-year (2008-2012) average net weekly withdrawal of 27.8 Bcf. Additionally, net withdrawals were more than 100 Bcf greater than those recorded over the same period in 2012, which had an average weekly net injection of 9.8 Bcf during a period of warmer-than-normal weather.
Conversely, in 2013, the average weekly withdrawals for the four full weeks of March took place during a period of prolonged winter weather. In 2013, gas-weighted heating degree days (HDDs) for weeks 9 through 12 averaged 167.8, compared to the 91.0 HDDs recorded during these four weeks in 2012. Average weekly HDDs for the four weeks of March in 2013 were also greater than the weekly five-year average HDD of 135.3 for the same time period.
The seasonally cold temperatures during March 2013 not only occurred alongside record withdrawals, but also led to substantial upward revisions to projected residential, commercial, and industrial natural gas consumption in March for EIA’s Short-Term Energy Outlook. In addition, they also likely played a role in the rising natural gas prices that were recorded last month.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.302 MMBtu $4.251 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net withdrawal of 94 Bcf (billion cubic feet) for the week ending March 29, 2013.
Inventories are at 1,687 Bcf, which is down 31.6% or 779 Bcf from last year and 37 Bcf above the 5-year average or 2.1%.
Both spot and futures prices posted modest declines this report week (Wednesday, March 27 – Wednesday, April 3). The Henry Hub spot price decreased from $4.08 per million British thermal units (MMBtu) last Wednesday to $4.00 per MMBtu yesterday. Most price points across the country also experienced modest declines.
The May 2013 New York Mercantile Exchange (Nymex) contract also declined, from $4.068 per MMBtu last Wednesday to close at $3.900 per MMBtu yesterday.
Working natural gas in storage declined to 1,687 Bcf as of Friday, March 29, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage withdrawal of 94 Bcf for the week moved storage levels 779 Bcf below year-ago levels, and 37 Bcf below the 5-year average.
Natural gas rotary rigs totaled 389 as of Friday, March 28, according to data released by Baker Hughes Incorporated. This represents a decline of 29 rigs from the previous week and is the first time it has fallen below 400 since 1999. Oil rigs rose by 30 to 1,354.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.105 MMBtu $4.178 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net withdrawal of 95 Bcf (billion cubic feet) for the week ending March 22, 2013.
Inventories are at 1,781 Bcf, which is down 26.5% or 642 Bcf from last year and 61 Bcf above the 5-year average or 3.5%.
Both spot and futures prices reached 18-month record highs during this report week (Wednesday, March 20 – Wednesday, March 27). The Henry Hub spot price rose from $3.96 per million British thermal units (MMBtu) last Wednesday to $4.08 per MMBtu yesterday, its highest level since September 2011. Price changes were mixed, and mostly small, with the exception of large declines in the Northeast United States.
At the NYMEX, futures contracts made gains similar to the Henry Hub price. The April 2013 NYMEX natural gas contract expired Tuesday, March 26, just under $4 per MMBtu. The May 2013 contract moved into the near-month slot and ended trading yesterday at $4.068 per MMBtu.
Working natural gas in storage declined to 1,781 Bcf as of Friday, March 22, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage withdrawal of 95 Bcf for the week moved storage levels 642 Bcf below year-ago levels, and 61 Bcf above the 5-year average.
Natural gas rotary rigs totaled 418 as of Friday, March 22, according to data released by Baker Hughes Incorporated. This represents a decline of 13 rigs from the previous week. Oil rigs fell by 17 to 1,324.
In the News: Planned natural gas pipeline expansions would add nearly 30 Bcf/d of new capacity through 2016
According to U.S. Energy Information Administration’s (EIA) pipeline projects data, nearly 30 billion cubic feet per day (Bcf/d) of natural gas pipeline capacity in the United States is in some stage of proposed or planned development with scheduled completion dates through 2016. These data are based on the latest information available from company and Federal Energy Regulatory Commission (FERC) statements as of December 2012. It includes both new pipelines, and expansions and lateral extensions to existing pipelines. It is uncertain whether all currently planned expansion projects will be completed, although they are more likely to be constructed the further along they are in the approval process.
About 39 percent or 11.5 Bcf/d of the planned capacity projects have received approval from FERC. Currently, only 10 percent of the planned additions are actively under construction, with more than half of those located in the Southwest. Combining all stages of project development, above 40 percent of all planned pipeline projects are located in the Northeast, which accounted for over half of all completed natural gas pipeline projects in 2012. Despite material gains in pipeline capacity additions and shale-driven natural gas production in the United States since 2005, the greater New York metropolitan area and especially New England markets still experience frequent constraints.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.185 MMBtu $4.226 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net withdrawal of 62 Bcf (billion cubic feet) for the week ending March 15, 2013.
Inventories are at 1,876 Bcf, which is down 21.1% or 502 Bcf from last year and 162 Bcf above the 5-year average or 9.5%.
Natural gas prices were up across the report week (Wednesday to Wednesday). Prices increased by around 25 to 30 cents per million British thermal units (MMBtu) at most price points, with the exception of Northeastern points, which rose more substantially. The Henry Hub closed at $3.96 MMBtu yesterday, up 24 cents for the week.
The April 2013 New York Mercantile Exchange (Nymex) contract rose apace with the Henry Hub spot price, from $3.680 per MMBtu last Wednesday to close at $3.960 per MMBtu yesterday.
Working natural gas in storage fell last week to 1,876 billion cubic feet (Bcf) as of Friday, March 15, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage withdrawal of 62 Bcf for the week put storage levels 502 Bcf below year-ago levels, and 162 Bcf above the 5-year average.
The Baker Hughes Incorporated natural gas rotary rig count increased by 24 units, from 407 to 431 as of Friday, March 15, after falling through most of 2012 and early 2013. The average oil rig count stayed flat at 1,341.
In the News: Average price spread of natural gas delivered to the power sector over coal declined by over three-quarters in 2012, while ratio of net natural gas power generation to coal rose by 39 percent.
The average price of natural gas delivered in the United States to electric power generators decreased to $28.16 per megawatt hour (MWh) in 2012, 28 percent below the average for 2011, according to data from the U.S. Energy Information Administration’s (EIA) Electric Power Monthly. This reflects a spread of $3.22 per MWh over the average annual price of coal delivered to the power sector in 2012, less than one-quarter of the $14.20 per MWh average spread in 2011, and just over one-fifth of the $16.49 per MWh average spread from 2009 to 2011.
During 2012 in the United States, power generation from natural gas rose by 21 percent above 2011 levels to 1,231 million MWh, while generation from coal decreased by 12 percent to 1,517 million MWh. The average ratio of power generated from natural gas to power generated from coal reached 0.81 in 2012, 39 percent above the 0.58 average ratio in 2011, and 82 percent above the 0.44 ratio in 2008, when average Henry Hub natural gas prices were more than double the annual averages seen since. For 2013 and 2014, EIA’s Short-Term Energy Outlook forecasts the gas/coal net generation ratio to come down from its 2012 level, but to stay above the level seen in 2010 as the natural gas to coal price spread increases from 2012 levels while staying below the average 2010 level.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.113 MMBtu $4.175 MMBtu
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