Thursday, August 2, 2012

EIA: Storage +28 Bcf to 3.217 Tcf

The EIA reported a 28 Bcf increase in working gas in storage this week, bringing the total storage level to 3.217 Tcf  The weekly injection was 35% below last year (+43 Tcf) and 50% below the five year average (+56 Bcf).  The current storage level is 17.2% above last year (2.702 Tcf) and 14.5% above the five year average (2.754 Tcf).  Slowly chipping away at it...

Temperatures last week averaged 77.9 degrees, 1.9 degrees warmer than last year and 2.6 degrees warmer than average.

We've been walking a razor's edge for the past several months as storage levels have gradually decreased because of a combination of decreased gas drilling and production and increased use of natural gas in power generation.  The EIA published the illustration below which shows just how much greater the "Summer Power Burn" has been this year (red line) versus the past five years (gray shading).  Gas benefited both from low commodity prices relative to coal and from high temperatures that caused increased use of gas plants, which are used for peak periods because they can be turned on and off more efficiently than coal plants, meaning that a portion of the increased use of gas this summer has occurred irrespective of price.  It pains me to say it, but, yay, hot weather!

1 comment:

Anonymous said...

Have a great vacation and thanks for all your work in gathering all of this information!