Thursday, March 8, 2012

EIA: Storage -80 Bcf to 2.433 Tcf

The weekly working gas in storage report showed an 80 Bcf decrease, bringing the level of gas in storage to 2.433 Tcf.  The weekly withdrawal was 27% greater than last year (-63 Bcf) but 13% lower than the five year average (-92 Bcf).  The current storage level is 43.6% above last year (1.694 Tcf) and 48.3% above the five year average.  That's really astounding - for the past few years, the parlour game has been wondering if storage will make it as low as 1.5 Tcf before the shoulder season starts.  At this point, just getting to 2 Tcf would be a bloody miracle.

Temperatures last week were 3.0 degrees warmer than last year and 2.7 degrees warmer than the 30 year average.  But temperature alone doesn't explain the high storage levels, which balance consumption, production and imports.  Consumption continues to be low, but the biggest reason storage won't sink is production.  While last week's production dropped 0.7% from the previous week, it was still 7.5% higher than the same week last year.  I guarantee you that consumption is not growing by 7.5%!

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