Natural Gas Production Continues to be Incentivized by Lower Withdrawal Season Ending Inventory & Midstream Completions
Withdrawal Forecast for Report issued Thursday March 22, 2018 for Week Ending March 16th!
Net Withdrawal Forecast from 90-110 Bcf with ~4/5 of the Withdrawal from "Midwest" and "Eastern" Regions!
In the week ending March 16th, (EIA Reporting date 3/22/2018) A Larger Proportion of Natural Gas and Less Coal was burned for Electric generation Feedstock and the Northeast and Middle Atlantic 'sub-region' of the Eastern Statistical Region. However, despite this, much of the Natural Gas utilized was Imported or Unavailable so the potential Domestic Withdrawal that should have occurred appears to have been blunted. Moreover, apart from the "Midwest" region, there was little Overall Net Withdrawals from the "Mountain", "Pacific" and "South Central". Population-Weighted CDDs won't show up significantly until Next Weeks Report, for the week ending March 23rd, Released on March 29th.
Oil Becomes Energy Focus as Saudi Aramco and U.S. Shale-Oil Fight for Market Domination while Russia & other OPEC Member Nations Await Outcome!
Meanwhile Interest Rates rise as Midstream project completions are delayed, leaving the most productive Natural Gas region stranded. Without adequate Takeaway Capacities to serve or reach nearby Export sites, like Cove Point, and major Northeastern urban centers, such as NYC, who must limit Natural Gas usage, managed by Con Edison (limited to 1.6% annual increases despite a State mandated program to convert Oil Heating to Natural Gas), and Boston, whose lack of pipelines has forced them to import expensive LNG from Qatar. All these impediments, including Tax Reform, and the surprise unfavorable FERC rulings regarding MLPs (midstream service providers for Natural Gas connection completions) coinciding with higher interest rates, from the Fed too. Other issues, such as "Protectionist Tariffs" and blundered Tax Reform act to hinder the 2H2018, and the result is pushing the U.S. closer to Recession.
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