Natural Gas Storage Data Higher Than Expcted

Natural Gas inventories for the latest week came in slightly higher than expected, as storage levels rose by 46 bcf versus forecasts for a build of 41 bcf.  As shown below, heading into this year's drawdown period, natural gas inventories are comfortably higher than average.  Therefore, barring an extremely cold winter, natural gas prices should stay in check. 

However, judging by the weather the East Coast has seen over the last few days, we may be burning more gas than normal.

click to enlarge

Comments

[NOWHEREMAN:]

part of the decline will be the continued decrease in fertilizer production...Nitrogen for corn.

With corn prices off 50% from the summer's highs, the use of nitrogen fertilizers will drop and NG use for creation of same drops accordingly.

2008 Nov 01 03:16 PM

[Urbane Gori...:]

paultaut.. Correct. Not to mention the decreased need for plastics and energy to run factories... All part of the global meltdown...

Thanks "Dubya!" Once again, your administration sat around doing nothing till it was too late!

jegan

2008 Nov 01 04:00 PM

[beabaggage:]

Stable NG pricing will make NG the preeminent green direction for Obamanation coming 11/4. Funds will be limted to green via wind/solar etc. and if NG stays 6-8$, then NG will win for sure. Look at Atlas Pipeline plans for 2009 drilling, drill rig count will stay active and rise. Florida Power and Light killing more Wind for 2009 etc.
It really pays to do due dilegence folks. read this stuff, not just the headline numbers and spin. the macro for NG is too powerful to stop and loading up on MLPs ala Mark Cuban and CanRoys will pay in the end. Drillers too.
LONG HTE, AAV, PWE, PVX, OGF.UN-TO, VIP.UN-TO, KYE, PDS and a little GW for long-term investment. This NG build stuff is tough in the short term but NG is the energy of the future.
When you stop day trading and speculating and start "INVESTING" you too will be rewarded.
Gas Bills are up over 2007-08 season so far BUT budget payments for monthly gas use are down in the Northeast where I am- 10% in last adjustment alone. So folks staying home for staycations, u/e or working/ will splurge when weather is cold for a little warmth.

2008 Nov 01 07:30 PM

[billp37:]

Do you believe what corp/gov/msm writes?

I READ that natural gas production in the us peaked on 2001 and has been declining since then.

www.prosefights.org/ga...

and

www.prosefights.org/pn...

So where is the data to support contrary opinions?

2008 Nov 01 09:33 PM

[mkreisel:]

You obviously know nothing about all the natural gas coming online since 2005.

The NG peak of 2001 is already history.

We have a massive NG supply glut in this country. CHK will probably go bankrupt very soon.

2008 Nov 02 01:17 AM

[NOWHEREMAN:]

Devon energy expects their NG production to drop 33% next year, delivery costs exceed prices received.

The US imports 15% of its NG, there is no surplus production; Pipeline from Canada to the US, 24/7 operation.

CHK had a run manufactured by some Bears, Forced the CEO to sell all of his shares because of Margin calls. Insiders are buying at these depressed prices.

New NG projects are stalled all over the world. The building of new LNG terminals have stopped, some in the middle of completion like in Western Australia. Current NG projects like Haynesville are to expensive to expand given NG's present price.

It won't take long for the imaginary surplus to disappear if new supply is curtailed because of present prices.

CHK had some 10,000 rigs operating? I don't know the exact figure. No additional work other than maintenence. It will surpass its old highs as soon as reality hits. Natural gas production in the US does not meet current demand.

Shutting down Canadian NG into the US should not affect the price if there really is a Surplus.

Ask any of the Know it all Green websites, what NG's price would be without Canadian importation.

2008 Nov 02 11:35 PM