Thursday, October 25, 2012

New July Natural Gas Data

The EIA released its July production and consumption figures today, and it tells an improving story of the natural gas market.  Given the bloom of supply, there is a long way to go before the supply/demand dynamic is healthy and self-sustaining, but it's not as bad as it looked earlier this year.

July dry gas production continued to be strong with total production of 2.024 Tcf, which was the second highest month (to January 2012) in the past eleven years.  Production through the first seven months was 13.924 Tcf, which is 794 Bcf, or 6.0%, above last year and 2.433 Tcf, or 21.2%, above the ten year average.

Consumption, as measured by gas delivered to consumers, was 1.865 Tcf in July, which was 305 Bcf higher than the ten year average and for the fourth straight month was higher than the previous high for the past ten  years.

Compared to last year, consumption through the first seven months was 13.751 Tcf, which is up 410 Bcf, or 3.1%, compared to last year and   The biggest gains have been in the utility sector, where consumption is up 29.1%, as gas has been substituted for coal.  Residential consumption, on the other hand, is down 18.8% with last year's very warm winter.

Same goes for the first seven months of 2012 versus the average of the previous ten years.  Consumption is up 1.046 Tcf, or 8.2%, and utilities are up 54.0% while residential is down 19.4%.

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