Natural Gas: "US market better equipped to handle low gas inventories: Goldman Sachs"

I sure hope so. One potential demand problem: all the talked-about transportation uses, from locomotives to tractor-trailers, are starting to come online.
From Platts:

Less coal-to-gas switching, pipeline debottlenecking in key regions and strong production will allow the US natural gas market to cope with historically low inventory levels, Goldman Sachs analysts said.

While the market will likely fall 400 Bcf short of the traditional end-October inventory level of 3.8 Tcf, the better supplied environment due to shale plays mean "fewer inventories than normal will be needed to serve the market as production can take up the slack," Goldman said Thursday in a note to clients.

As of May 9, working gas in storage was 1.60 Tcf, 790 Bcf less than last year and 959 Bcf below the five-year average of 2.119 Tcf, according to the US Energy Information Administration. The severe winter took inventories to a 10-year low.

Specifically, Goldman said 1.7 Bcf/d of pipeline debottlenecking in the Marcellus and Utica production regions "will leave the market better supplied starting from November."

Also in the note, the bank raised its 2015 price estimate for natural gas to $4.25/MMBtu, up 25 cents, as summer prices will unlikely trade below $4.50/MMBtu consistently to "disincentivise any coal-to-gas switching in order to rebuild to 3.4 Tcf during the summer."...MORE

June futures $4.4140 down 5.5 cents.