EIA Reports Robust Natural Gas Supply

September 7, 2012 06:21 AM
 

The U.S. Energy Information Administration (EIA) released its natural gas storage report yesterday, September 6. The report breaks the Nation into three regions...East, West, and Producing (southern) regions. (Click here for map)

The data shows a negative change week-over-week of 7 billion cubic feet (bcf) in the Producing region as Hurricane Isaac forced a temporary Gulf production shutdown. The West region injected 1bcf over the week bringing the total bcf in western storage up to 492bcf. Meanwhile, the East region added 34bcf to storage edging closer to maximum proven storage capacity and pushing total supply in storage for the lower 48 states up by 28bcf.

Current Stocks in billion cubic feet (bcf):

Region
8/31/12
8/24/12
Change week over week
East
1,793
1,759
34
West
492
491
1
Producing
14,117
1,124
-7
Total
3,402
3,374
28

 

Historical Comparisons:

According to the EIA's data, injections are up 13.1% over last year with the southern Producing region leading advances in supply with a 16.6% year-over-year bump.

Year Ago (8/31/12):

Region
Stocks bcf
% Change
East
1,619
10.7
West
429
14.7
Producing
958
16.6
Total
3,007
13.1

 

If we examine the five year average we can clearly see how robust supplies in storage have been steadily driving prices lower all along. Total change over the 5-year amounts to a 10.7% increase in supply led by the prolific southern Production region's 18.5% advance.

Five-year (2007-2011) Average:

Region
Stocks bcf
% Change over 5 year
East
1,700
5.5
West
431
14.2
Producing
943
18.5
Total
3,073
10.7

 

A hotter week in the south will likely show another draw for that region next week. But domestic supplies are at 5-year highs and injections into storage continue as we exit the heat of the summer. In response, natural gas prices should continue to soften.


 

 

 

 

 

 

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