Thursday, July 28, 2016

Like Looking in a Mirror

It's funny how history has a tendency to repeat itself, although sometimes it is more of a reflection than a retracing of steps.  As the air (gas?) is slowly releasing from the inflated natural gas storage numbers of the past year, it's interesting to see how it is almost a perfect reflection of the gradual buildup of gas in storage from a large deficit two years ago.  

The chart shows the deviation from the five year average for each current year, and the declining surplus this year (red line) is almost exactly matching the 2014 storage build (light blue line).

1 comment:

Anonymous said...

The trend is also much like 2012: in April the talk was that gas was going to burst out of the overfilled storage caverns come fall, then a warm summer and power plant use came on to save the industry. But 4 years ago the gas producers could switch to oil drilling for help, and debt markets were much more accessible.