Thursday, March 25, 2010

Yikes! Storage +11 Last Week

It is hardly a surprise given the mild weather across the country, but the weekly EIA natural gas in storage number showed an increase of 11 Bcf to 1.626 Tcf.  Last year this week, the storage bottomed out, but the five year average for this week shows a decrease of 37 Bcf.  As a result, the current storage level is 8% higher than the five year average.  Only the East region (-10 Bcf) showed a net gas withdrawal last week.  Not a pretty picture:

To get to the five year average trough of 1.478 Tcf, there has to be a withdrawal of 148 Bcf, a highly unlikely scenario. Unless there is a big (prolonged) cold snap across the country, we are in for a long summer of stories about ballooning gas inventories.  Brace  yourself for the headlines.

If you want to see why storage went up instead of down, take a gander at  these higher than normal temperatures:

I noted high temperatures in the 20's this morning in the Upper Midwest, but it might be too little too late.

1 comment:

Anonymous said...

#$^&*())*(&%#@#@%&*(() shit!