Thursday, September 27, 2012

Storage Injections This Season

As noted earlier, the weekly EIA working gas in storage report showed an 80 Bcf net injection, which was the highest injection so far this season (starting in March 2012).  That's pretty amazing and has helped narrow the gap between the current storage level and the five year average significantly.  At one point this spring, the level of gas in storage was 60% higher than the five year average (below).

Thankfully, unusually low injection levels this season have helped rein in the storage disparity.  Today, the EIA published the chart below which captures the concept in a picture, showing how far this year's injection levels have been below last year and the five year average.  To me it shows pretty good restraint from producers given the amount of shale gas out there ready to go.

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