Source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report (WNGSR) and Short-Term Energy Outlook (STEO)
Storage injections have continued to outpace the five-year (2009-13) average this summer, with inventories as of September 5 at 2,801 billion cubic feet (Bcf), according to data from the Weekly Natural Gas Storage Report (WNGSR). The winter of 2013-14 led to a large drawdown in inventories, with stocks ending March 2014 almost 1 trillion cubic feet (Tcf) lower than the five-year average and at their lowest end-March level since 2003. Relatively higher weekly net injections into storage reduced that deficit to 463 Bcf as of September 5....MORE
EIA's latest Short-Term Energy Outlook (STEO) expects that this trend will continue, with forecast inventories of 3,477 Bcf by the end of October, 355 Bcf below the five-year average and the lowest end-October level since 2008. However, the effect of these lower inventories on winter natural gas markets is expected to be mitigated by increasing new production, as evidenced by decreasing seasonality in natural gas futures contracts.
Although the injection season began slowly, injections have exceeded their average comparable-week levels in each week since April 18. Strong domestic production growth and mild demand have supported strong injections through the summer. Dry natural gas production grew to 70.2 billion cubic feet per day (bcf/d) in June, up nearly 6% from 66.4 bcf/d in June 2013, while mild weather reduced natural gas use for electric generation. Natural gas prices have also fallen during the injection season....
And from the Natural Gas Weekly Update heating (and cooling) degree days:
| Temperature -- Heating & Cooling Degree Days (week ending Sep 04) | ||||||||
|---|---|---|---|---|---|---|---|---|
HDD deviation from:
|
CDD deviation from:
|
|||||||
| Region |
HDD Current
|
normal
|
last year
|
CDD Current
|
normal
|
last year
|
||
| New England |
5
|
-5
|
4
|
41
|
25
|
-1
|
||
| Middle Atlantic |
2
|
-4
|
2
|
53
|
25
|
-6
|
||
| E N Central |
1
|
-9
|
-4
|
57
|
29
|
7
|
||
| W N Central |
2
|
-13
|
-3
|
57
|
19
|
-11
|
||
| South Atlantic |
0
|
-1
|
0
|
104
|
27
|
6
|
||
| E S Central |
0
|
-1
|
0
|
97
|
27
|
3
|
||
| W S Central |
0
|
-1
|
0
|
124
|
19
|
-11
|
||
| Mountain |
8
|
-11
|
8
|
65
|
10
|
-15
|
||
| Pacific |
3
|
-4
|
3
|
58
|
20
|
-15
|
||
| United States |
2
|
-6
|
0
|
75
|
23
|
-4
|
||
| Note: HDD = heating degree-day; CDD = cooling degree-day | ||||||||
...MUCH MORE
Despite the storage build, prices have managed to stay within the approx. $3.75-4.05 trading range for the last couple months:
