Natural Gas in Underground Storage
The weekly EIA Natural Gas Storage Report advised that there was a withdrawal of 359Bcf (billion cubic feet) from Underground Storage for the week ending January 5th, 2018.
This is 29Bcf above the median forecast of a 330Bcf withdrawal, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. The withdrawal one year ago was 158Bcf and the 5-year average withdrawal is 183Bcf. Storage is 415Bcf below last year for the same week and 382Bcf below the 5-year average. Working gas in storage stands at 2767Bcf.
Natural Gas Pricing
As of 9:48AM CST, February 2018, (the prompt month) Natural Gas was trading at $3.00, unchanged from one week ago and the 1-Year Spread average was $2.84, -$0.03 from one week ago.
Crude Oil Pricing
As of 9:30AM CST, February, 2018, (the prompt month) Light, Sweet Crude on the NYMEX was at $64.38, +$2.58 from one week ago.
Crude Oil Inventory
US crude inventories fell by 4.9 million barrels to 419.5 million barrels for the week ended Jan. 5th, according to data released yesterday morning by the US Department of Energy. Traders in the Reuters poll projected a draw of 11.2M barrels.
U.S. Rotary Rigs
U.S. Rotary Rigs drilling for natural gas were unchanged at 182 for the week of January 5th. The number of rigs currently drilling for Natural Gas was 47 higher than last year’s level of 135. US Rigs drilling for oil were -5 at 742. There are 213 more rigs targeting oil than last year. Canadian rigs were +38 at 174 for the week. Rigs targeting oil remain at 80% of all drilling activity.
Can't please everyone: Trump energy policy riles competing sectors: WASHINGTON (Reuters) - When the administration of U.S. President Donald Trump proposed new subsidies for coal and nuclear plants, it seemed like an obvious way to deliver on campaign promises to boost the nation’s energy industry. And yet the plan, announced in September, set off sharp criticism from other sectors that Trump has also vowed to help, such as natural gas and utilities.
The AccuWeather 1-5 day Outlook forecasts above-normal temperatures for the East Coast and Western third of the US and below-normal temps for the Central states. The 6-10 Day Outlook projects most of the Western US at above-normal temps, the Central states at normal temps and the East at below-normal temps. The 11-15 Day Outlook forecasts the East coast at above-normal temps with the Central states at mostly normal temps and the West at below-normal temps.
Sustainability and Renewables
Someone stole a piece of China’s new solar panel-paved road less than a week after it opened: Putting solar panels into our roads isn’t the craziest idea, but we may as well admit that it poses some unique challenges. For instance, people may want to walk away with pieces of it. That’s what happened in China, anyway, just five days after authorities opened up what they claim is the world’s first solar panel-paved highway.
This Week's Key Takeaway
As expected, this week's withdrawal from Natural Gas Underground Storage was enormous, even eclipsing forecasts and increasing the storage deficit vs. last year significantly. Although Natural Gas prices had dropped, they have now returned to the $3.00 level. Additionally, the U.S. has now become a net exporter of Natural Gas on an annual basis, according to the EIA for the first time since at least 1957.