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.
