Skip to comments.Natural gas has largest storage withdrawal on record
Posted on 04/11/2014 8:02:26 AM PDT by thackney
(For the Week Ending Wednesday, April 9, 2014)
Spot prices rose slightly at most hubs for the report week (Wednesday, April 2, to Wednesday, April 9) and went up significantly at the benchmark Henry Hub, following declines the previous week. The Henry Hub spot price rose from $4.35/MMBtu last Wednesday to $4.66/MMBtu yesterday. At the New York Mercantile Exchange (Nymex), the May 2014 contract increased from $4.364/MMBtu on Wednesday to $4.586/MMBtu yesterday.
Working natural gas in storage rose to 826 billion cubic feet (Bcf) as of Friday, April 4, according to the U.S. Energy Information Administration (EIA) Weekly Natural Gas Storage Report (WNGSR). A net storage injection of 4 Bcf for the week resulted in storage levels 50.7% below year-ago levels and 54.7% below the 5-year average.
The total rig count was 1,818 as of April 4, an increase of 9 from the previous week, according to data from Baker Hughes Inc. The natural gas rig count decreased by 2 rigs to 316, while the number of oil-directed rigs rose by 11 to 1,498. Since the beginning of 2014, the gas-directed rig count has decreased by 56, with the biggest declines at the Eagle Ford Shale in South Texas (-15), and the Woodford Shale in Oklahoma and Texas (--10). The oil-directed rig count increased by 120, with biggest increases at the Permian Basin in West Texas and eastern New Mexico (61), and the Eagle Ford (11).
A 2% rise in the price of propane, from $11.48/MMBtu to $11.71/MMBtu, caused the weekly average natural gas plant liquids composite price to increase for the second week in a row. The composite price rose this week (covering March 31 through April 4) by 0.2%, and is now at $9.94/MMBtu. The propane price increase alone drove up the composite price, as prices decreased for ethane (1.3%), butane (0.7%), isobutane (1.0%) and natural gasoline (0.7%).
Soon we will have the largest amount of natural gas put into storage to replace that withdrawn for the coldest winter on record.
Maybe. Companies have been sponsoring news to say that they’ve been exporting more liquid natural gas, and that their increased exports will save the economy. No problem. We need less of the fuel here anyway with so many Americans out of work.
World demand for gas will increase our exports to the limit set by our anti energy government. Local production is high and will refill the local storage before next cold spell.
Thanks. That would be mighty right compared to what some of the LPG sellers did last fall and winter (little underestimating there in re. exports and ethanol drying), just ahead of the EPA’s proposed wood stove ban for 2015.
Here’s a repeat for those who haven’t seen the info, need more self-sufficiency and don’t want to use much wood. [Little buffer against consequences of energy hysteria there.] As for regulations and insurance companies...heh.
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