Natural Gas
Natural Gas Update
Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 95 Bcf (billion cubic feet) for the week ending June 7, 2013.
Inventories are at 2,347 Bcf, which is down 20% or 587 Bcf from last year and 58 Bcf below the 5-year average or 2.4%.
Natural gas hub prices declined in most regions this week (Wednesday to Wednesday). The Henry Hub closed at $3.74 per million British thermal units (MMBtu) yesterday, down 25 cents, or 6.3%, for the week.
At the Nymex, the near-month (July) Nymex contract finished trading yesterday at $3.777 per MMBtu, 22.4 cents, or 5.6%, below its previous Wednesday close.
Working natural gas in storage increased to 2,347 billion cubic feet (Bcf) as of Friday, June 7, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). A net storage injection of 95 Bcf for the week resulted in storage levels of 587 Bcf below year-ago levels, and 58 Bcf below the 5-year average.
The Baker Hughes natural gas rotary rig count totaled 354 units as of Friday, June 7, the same total as the preceding three weeks. The average oil rig count declined by 4 units to 1,406.
The weekly average natural gas plant liquid composite price for last week (Monday, June 3 – Friday, June 7) fell only $0.03 per MMBtu over the previous week to $9.08 per MMBtu. The natural gasoline spot price increased by 2% and the ethane spot price fell by 4%. The ethane price has been declining consistently each week since the week of April 29 when it averaged $4.02 per MMBtu. Last week the ethane spot price averaged $3.59 per MMBtu.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$3.983 MMBtu $4.071 MMBtu
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Natural Gas Storage Facts
EIA (Energy Information Administration) reported a net injection of 111 Bcf (billion cubic feet) for the week ending May 31, 2013.
Inventories are at 2,252 Bcf, which is down 21.5% or 616 Bcf from last year and 69 Bcf below the 5-year average or 3%.
Natural gas prices declined across all regional hubs this week (Wednesday to Wednesday). The Henry Hub closed at $3.99 per MMBtu yesterday, down 16 cents, or 3.9%, for the week.
At the Nymex, the June 2013 contract closed at $4.148 per MMBtu on Wednesday, May 29, its final day of trading. The near-month (July) Nymex contract finished trading yesterday at $4.001 per MMBtu, 2.2 cents, or 0.5%, below its first day as the near-month contract on May 30, and 1.1 cents per MMBtu above the Henry Hub spot price.
Working natural gas in storage increased to 2,252 Bcf as of Friday, May 31, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). A net storage injection of 111 Bcf for the week resulted in storage levels of 616 Bcf below year-ago levels, and 69 Bcf below the 5-year average.
The Baker Hughes natural gas rotary rig count totaled 354 units as of Friday, May 31, the same total as the preceding two weeks. The average oil rig count rose by 8 units to 1,410, following two weeks of declines.
The weekly average natural gas plant liquid composite price for last week (Tuesday, May 28 – Friday, May 31) decreased by 2%, falling $0.17 per MMBtu over the previous week to $9.07 per MMBtu. The ethane and propane spot prices fell by 4% and 2%, respectively, driving the decrease in the composite price.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.002 MMBtu $4.097 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 24, 2013.
Inventories are at 2,141 Bcf, which is down 23.7% or 664 Bcf from last year and 88 Bcf below the 5-year average or 3.9%.
With the exception of locations in the Northeast, natural gas spot prices were flat or slightly down at most trading locations during the report week (Wednesday, May 22 – Wednesday, May 29). The Henry Hub spot price decreased by $0.01 per million British thermal unit (MMBtu) from $4.16 per MMBtu last Wednesday to $4.15 per MMBtu yesterday.
At the New York Mercantile Exchange (Nymex), the price of the near-month (June 2013) natural gas futures contract fell slightly, moving from $4.186 per MMBtu last Wednesday to $4.148 per MMBtu yesterday.
Working natural gas in storage increased to 2,141 billion cubic feet (Bcf) as of Friday, May 24, according to EIA’s Weekly Natural Gas Storage Report (WNGSR). An implied storage injection of 88 Bcf for the week moved storage levels 664 Bcf below year-ago levels, and 88 Bcf below the 5-year average.
The natural gas rotary rig count, as reported by Baker Hughes Incorporated, was flat at 354 as of Friday, May 24. The oil rig count fell by 6 units to 1,402.
The weekly average natural gas plant liquid composite price for last week (Monday, May 20 – Friday, May 24) decreased $0.05 per MMBtu over the previous week to $9.24 per MMBtu. Natural gasoline and propane spot prices were down by 2 percent and 1 percent, respectively, more than compensating for a 3 percent increase in the ethane spot price.
12/24-Month Strip (NYMEX) Price
12 Month Strip 24 Month Strip
$4.164 MMBtu $4.232 MMBtu
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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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