Natural gas price spiked up 15 cents this morning to $3.65/MMBtu. WHY???
Working gas in storage was 2,614 Bcf as of Friday, January 4, 2019, according to EIA estimates.
It now looks like storage will drop below 1,800 Bcf by Friday, February 1. The 5-year average draws for February (647 Bcf) and March (264 Bcf) will then take storage down to less than 900 Bcf by the end of March. A cold first half of February may cause gas rationing in the large cities around the Great Lakes.
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Natural Gas Price - Jan 16
Natural Gas Price - Jan 16
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Price - Jan 16
Forbes: U.S. Natural Gas Demand For Electricity Can Only Grow
Even more so going forward, natural gas will be the main source of U.S. electricity, currently at 33% of all generation. Electricity accounts for a leading 35% of total U.S. gas demand, or a rising 9.6 trillion cubic feet consumed for power burn per year. Impressively, even though U.S. power consumption has been flat, our gas used to generate electricity is up 42% in the shale-era since 2008. The current winter has seen the highest natural gas prices since 2014, with the most prompt month price volatility in over a decade. Gas prices started to increase in early-November, when a cold and early start to winter was augmented by short covering and a 20% gas storage deficit to the five-year average that helped push prices up. Gas used for electricity has been fluctuating along with prices. In the three weeks from Halloween to the day before Thanksgiving, Henry Hub gas prices jumped from $3.31 per MMBtu to $4.70. Utilities cut back on their gas usage and ramped up coal power. Right before Christmas, coal production and transport was at its highest level since August 2017.
In a few years natural gas may generate 50% of U.S. electricity.
Read: https://www.forbes.com/sites/judeclemen ... e6a8f844c7
Midland Reporter Telegram: Op-ed: American natural gas is improving the air
The U.S. not only leads in energy production, but our nation also leads the world in emission reductions — while helping other countries improve their air. Natural gas, now America’s leading source of electricity generation, is credited with driving U.S. carbon-dioxide emissions to their lowest levels since 1992. The U.S. Global Change Research Program reports that North American CO2 emissions from fossil fuel combustion have declined on average by 1 percent per year over the last decade, “largely because of reduced reliance on coal, greater use of natural gas, and increased vehicle fuel efficiency standards.” Natural gas operators are poised to play a key role in future environmental progress through continued aggressive and innovative efforts to reduce methane emissions. So far, these efforts, driven by billions of dollars invested in advanced technologies, have led to an approximately 14 percent reduction in methane emissions from oil and natural gas systems since 1990. Domestic natural gas production increased by 50 percent during the same period. Simply put, production is up and emissions are down — an incredible achievement.
Even more so going forward, natural gas will be the main source of U.S. electricity, currently at 33% of all generation. Electricity accounts for a leading 35% of total U.S. gas demand, or a rising 9.6 trillion cubic feet consumed for power burn per year. Impressively, even though U.S. power consumption has been flat, our gas used to generate electricity is up 42% in the shale-era since 2008. The current winter has seen the highest natural gas prices since 2014, with the most prompt month price volatility in over a decade. Gas prices started to increase in early-November, when a cold and early start to winter was augmented by short covering and a 20% gas storage deficit to the five-year average that helped push prices up. Gas used for electricity has been fluctuating along with prices. In the three weeks from Halloween to the day before Thanksgiving, Henry Hub gas prices jumped from $3.31 per MMBtu to $4.70. Utilities cut back on their gas usage and ramped up coal power. Right before Christmas, coal production and transport was at its highest level since August 2017.
In a few years natural gas may generate 50% of U.S. electricity.
Read: https://www.forbes.com/sites/judeclemen ... e6a8f844c7
Midland Reporter Telegram: Op-ed: American natural gas is improving the air
The U.S. not only leads in energy production, but our nation also leads the world in emission reductions — while helping other countries improve their air. Natural gas, now America’s leading source of electricity generation, is credited with driving U.S. carbon-dioxide emissions to their lowest levels since 1992. The U.S. Global Change Research Program reports that North American CO2 emissions from fossil fuel combustion have declined on average by 1 percent per year over the last decade, “largely because of reduced reliance on coal, greater use of natural gas, and increased vehicle fuel efficiency standards.” Natural gas operators are poised to play a key role in future environmental progress through continued aggressive and innovative efforts to reduce methane emissions. So far, these efforts, driven by billions of dollars invested in advanced technologies, have led to an approximately 14 percent reduction in methane emissions from oil and natural gas systems since 1990. Domestic natural gas production increased by 50 percent during the same period. Simply put, production is up and emissions are down — an incredible achievement.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group