Energy Prospectus

Working gas in storage was 3,277 Bcf as of Friday, July 15, 2016, according to EIA estimates. This represents a net increase of 34 Bcf from the previous week. Stocks were 471 Bcf higher than last year at this time and 559 Bcf above the five-year average of 2,718 Bcf. At 3,277 Bcf, total working gas is above the five-year historical range.

This is the 11th week in a row that the net increase in natural gas storage have been SIGNIFICANTLY below the 5-year average.

The 5-year average injection for this week is 59 Bcf.

Over this 11 weeks, injections have been 652 Bcf, compared to the 5-year average of 933 Bcf.

HOT weather is forecast for the back half of July and August, which will increase demand for power generation at the same time U.S. gas production continues to fall. U.S. natural gas production is expected to decline by more than 2.0 Bcf per day from June 30 to December 31. It decline by more than 1.0 Bcf per day YOY in the first half of 2016.

U.S. natural gas demand (including exports) is expected to increase by 3.0 Bcf per day YOY in 2016 despite a very mild first quarter.

Except for pipelines from Canada, the U.S. has very little import capacity for gas. Canadian gas production is also falling.

10-day forecast for NYC: https://www.wunderground.com/us/ny/new- ... 01.5.99999

Very bullish for natural gas demand when temps go over 90 in the NE. Gas fired "peaking plants" for electricity consume a lot of gas.

In their 2nd quarter earning release, Kinder Morgan (KMI) noted that total U.S. gas exports to Mexico have grown to 3.3 billion cubic feet (Bcf) a day, with three quarters of that volume moving on Kinder Morgan pipes.