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Posts Tagged ‘natural gas storage’

EIA Reports Natural Gas Stocks Climb for First Time this Year

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The Energy Information Administration reported natural gas stocks climbed by 11 Bcf in the week ending March 16, slightly higher than the market consensus. 

Thursday’s report marks the first injection since November 2011 and likely the end of winter 2011/2012 withdrawal season.  Traditionally, the winter heating/withdrawal season is from November through March.  The first injection of 2012 comes about two weeks earlier than normal and pushes total inventories to 2,380 Bcf, further expanding the year-over-year surplus. 

Following the report, natural gas futures fell as the continued supply overhang weighs on prices.  For the remaining two weeks in March…
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It’s Chamber of Commerce Weather for Energy Buyers…

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It appears to be a bright, sunny day for those on the buy-side of natural gas and by extension, electricity. Natural gas futures on the NYMEX for prompt month fell on Thursday, closing within pennies of the 10-year low set in January. Following the EIA’s weekly storage report indicating a smaller-than-expected 80Bcf was withdrawn from storage last week, the market continued its downward trend with prices for delivery in April falling to $2.27/MMBtu.…
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Potential for the Warmest Winter in 62 Years

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Lack of weather related demand this winter has driven the natural gas market toward 10-year lows and allowed inventory stockpile levels to reach all-time highs. 

Data from the Energy Information Administration (EIA) through the week ending January 27 reports that natural gas storage levels are at 2,966 Bcf, about 375 Bcf higher than the previous record high of 2,571 Bcf set in 2007 during the same week.  In addition, the surplus in storage levels to last year and the five-year average continues to expand as a result of 12% lower population-weighted heating degree days (HDD) versus the 30-year average. …
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NYMEX Natural Gas Has a Volatile Week: Production Cuts & Weather Forecasts

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On Jan. 23, the NYMEX February gas contract hit a 10-year low of $2.231/mmbtu, a price last seen in March 2002.  Monday began what turned out to be a volatile week as Chesapeake Energy (CHK), the second largest gas producer, announced revisions to their 2012 outlook with an immediate cut in gas production and the possibility of further cuts.  The announcement sent the NYMEX rallying 38 cents, or as much as 17% on Monday and further gains were made throughout the week.  On Thursday, the rally stalled as weather forecasts for February continued to come in warmer than normal, returning…
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Today’s Energy Environment

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Today’s energy environment is riddled with a number of significant factors that can affect your bottom line.  Sluggish economic activity, record high natural gas production, and the EPA Clean Air Act rulings are all influencing the world of energy, and ultimately you as a consumer.

Environmental Policy Changes:
New and pending governmental regulations will most likely be an additional contributing factor to prices in 2012 and beyond. One such factor is the Cross State Air Pollution Rule (CSAPR), which was released by the Environmental Protection Agency (EPA) on July 7, 2011. This rule requires 27 states to significantly reduce…
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The Impact of Our New All-Time Record for Natural Gas Storage

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Well, it happened. We have a new all-time record for natural gas storage.

With the release of the U.S. Energy Information Administration’s (EIA’s) natural gas storage report Thursday morning, total domestic natural gas inventories rose last week by 19 bcf to 3.85 trillion cubic feet (tcf). This is a new all-time record for natural gas storage, surpassing the previous record of 3.84 tcf set in November 2010. And as we look a little further into the future, chances are we’ll see two more records set this month as current weather forecasts suggest the mild start to winter will linger…
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