U.S. Natural Gas Market is Undersupplied

[dan_s]

"Based on our model, the natural gas market remains 2+ Bcf/d undersupplied. We model that 3.3 Bcf/d of power generation demand must be destroyed this summer (via higher prices) in order to refill storage by November.  …With Summer Weather Coming in Hot… NOAA currently forecasts a strong probability for above-average temperatures this summer across the U.S. including each of the top 10 power producing states (TX, FL, CA, NY, PA, LA, AL, GA, MS, NJ), which account for 65% of total natural-gas-fired summer power generation. Based on our storage sensitivity analysis, our end of injection season storage forecast could move 205 Bcf lower if summer weather is comparable to 2016 levels (12% hotter than 5-yr average)." - Wells Fargo Equity Research 5-16-2017