Natural Gas Storage Report Injection Season Week 19 (Week Ending August 10, 2018)

Despite withdrawals in the Pacific and South Central regions, this week’s 33 Bcf injection of natural gas just barely surpassed the market expectation of 31 Bcf. After a majority of bullish builds over the past few weeks, the deficit still stands just shy of 600 Bcf against the five-year average. As we head into the last couple of months of injection season, supplementary weather patterns are expected to somewhat help…

Natural Gas Storage Report Injection Season Week 18 (Week Ending August 3, 2018)

The EIA’s reported injection of 46 Bcf was nearly right on target compared to the market expectation of 47 Bcf. Breaking the streak of three notably low builds in a row, this week could finally reflect a halt in the recent 18 cent rally that the September contract month has experienced, supplemented by surpassing two technical pricing hurdles and complementary warmer-than-normal weather over the past six trading days. With injections…

Sustaining U.S. Energy Through Right Policies

U.S. Energy Secretary Rick Perry makes a number of important points about domestic natural gas and oil production, hydraulic fracturing and U.S. energy exports in a piece for CNBC: The United States is shedding dependence on imported energy. U.S. energy exports are helping friends and allies overseas. Natural gas is helping the U.S. lead in cutting greenhouse gas emissions. Perry notes that thanks to technologically advanced hydraulic fracturing and horizontal drilling,…

Natural Gas Storage Report Injection Season Week 17 (Week Ending July 27, 2018)

Withdrawals from storage in the Pacific and South Central regions contributed to another underwhelming injection this week, as the EIA reported a build of 35 Bcf that once again came up short of the market expectation, which came in around 45 Bcf. Last year’s build of 18 Bcf was blown out of the water, but the five-year average of 42 Bcf for this same period corroborates the narrative of a…

Daily Market Update – August 2, 2018

Early Morning Update The Sep18 natural gas contract is trading up $0.01 at $2.77. The Sep18 crude contract is down $0.31 at $67.35. Summary The September NYMEX natural gas futures contract continued it’s descent for the third straight day yesterday, settling at $2.758/MMBtu after losing 2.4 cents. The 2020 calendar strip reached its lowest level ever on Wednesday, as well, settling at $2.60.  Normal temperatures have been creeping into weather…

What This Summer’s Heat Waves Tell Us About America’s Electric Grid

With another triple-digit heat wave scorching the Southwest this week, fears of widespread outages are back. California’s grid operator has urged homes and businesses to crank up thermostats and avoid running power-hungry appliances during evening peak hours – all in an effort to avoid disruptions like the ones we saw earlier this month. The dangerous and expensive outages that left 80,000 Los Angeles residents in the dark then may have been limited…

Natural Gas Storage Report Injection Season Week 16 (Week Ending July 20, 2018)

Another week of below average natural gas injections continues to widen the storage deficit against the five-year average as the EIA reported a bullish 24 Bcf build that fell noticeably short of the market expectation of 36 Bcf. This sparse injection somehow managed to exceed last year’s build of 19 Bcf, but it has yet again compared poorly to the five-year average during the same timeframe, which is reported at…

Energy Newsletter – July 2018

The New Midstream Transactions – A recent trend in the upstream and midstream oil and gas industry is for midstream services providers to offer certain forms of additional compensation to oil and gas lessees / operators (i.e., upstream asset holders) in exchange for providing acreage dedications and entering into long term services agreements, including mainly agreements for gathering, processing, transportation and the sale and marketing of hydrocarbons, and water sourcing…

Natural Gas Storage Report Injection Season Week 15 (Week Ending July 13, 2018)

The natural gas storage deficit grew yet again as this week’s injection of 46 Bcf came up noticeably short of the 56 Bcf market expectation. This build may be more robust than last year’s value of 31 Bcf, but it pales in comparison to the five-year average of 62 Bcf, which more accurately reflects the state of the thin storage levels that the market is currently experiencing. On a regional…

Offshore Energy, Conservation And Outdoor Recreation

Offshore energy development works for the states – all of them. The U.S. Interior Department recently announced that $61.6 million in revenues from offshore oil and natural gas will be distributed to all 50 states, U.S. territories and the District of Columbia – via grants that support state conservation and outdoor recreation projects. Ponder that: You don’t have to be a coastal state; you don’t have to be a producing state. Under…