Tuesday, June 21, 2016

2015 Natural Gas Flows

I love the EIA because they produce cool things like this (here is link to original):

What this says to me is that shale wells have become the largest single source of natural gas in the country.  It also shows that the uses for gas are pretty well diversified, but the largest source of consumption (electric power) is highly variable depending upon weather and economic conditions.  Still, it's a lot prettier picture than the same for coal:

Thursday, June 16, 2016

Storage Situation Improving...Slowly

With the EIA's announcement this morning that working gas in storage was up 69 Bcf to 3.041 Tcf, the gap between the current storage level and the five year average narrowed for the tenth consecutive week.  After reaching a high of 54.1% above the five year average on April 5, the deviation has slowly dropped to 30.1% with a series of below average injections.

While things are improving for gas, we still have a long way to go before the storage situation takes pressure off prices.  Come October we likely will be looking at another record or near-record storage year.