This season's cold temperatures across the nation have stormed natural gas inventories, driving the price of natural gas within range of $4.00 per million British thermal units (mmbtu) and increasing the value of natural gas assets owned by oil and gas energy company First Titan Corp. (OTCQB:FTTN).
According to the Energy Information Association, operators recently withdrew 45 billion cubic feet of natural gas from storage as severe cold blanketed the nation. The withdrawal was above last year's draw of 38 bcf. Importantly, much colder temperatures are being forecast for the winter, beginning this month. The National Oceanic and Atmospheric Association and The Weather Channel are calling for colder-than-average temperatures over the northern tier of states, from Washington state to northern New England.
"As it gets colder, people are forced to use the heater more, even in usually mild climate regions such as the Southwest and Southeast," FTTN Interim CEO Robert Federowicz said. "We expect our natural gas plays to be in even more demand as inventories decrease."
Industry researcher Seeking Alpha reports that expected frigid temperatures over key regions of the U.S. will lead to large withdrawals from natural gas inventories in the coming weeks, driving the price for natural gas to higher than expected levels.
For more information on First Titan and its project portfolio, visit firsttitanenergy.com/investors