Natural Gas in Underground Storage

The weekly EIA Natural Gas Storage Report advised today that there was a withdrawal of 149Bcf from Underground Storage for the week ending March 1st, 2019.

This is 6Bcf below the median forecast of a 155Bcf withdrawal, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. The withdrawal compares with a withdrawal of 57Bcf last year and 129Bcf for the five-year average. Storage is 243Bcf below last year for the same week and 464Bcf below the 5-year average. Working gas in storage stands at 1,390Bcf. There are 3 weeks left in the historical withdrawal season. (Read More)

Natural Gas Pricing


As of 9:26AM CST, April 2018, (the prompt month) Natural Gas was trading at $2.86, +$0.05 from one week ago and the 1-Year Spread average was $2.99, +$0.04 from one week ago.

Crude Oil Pricing


As of 8:32AM CST, April, 2018, (the prompt month) Light, Sweet Crude on the NYMEX was at $56.64, -$0.44 from one week ago.

Crude Oil Inventory


US crude inventories increased by 7.1 million barrels to 445.9 million barrels for the week ended March 1st, according to data released yesterday morning by the US Dept of Energy. Traders in the Reuters poll projected an increase of 1.2 million barrels.

U.S. Rotary Rigs


U.S. Rotary Rigs drilling for natural gas were -1 at 193 for the week of March 1st. The number of rigs currently drilling for Natural Gas was +14 from last year. US Rigs drilling for oil were -10 at 843. There are 43 more rigs targeting oil than last year. Canadian rigs were -1 at 211 for the week. Rigs targeting oil drop 1% to 81% of all US drilling activity.

Geopolitical


f U.S. Emissions Rose In 2018 Despite Clean Energy Growth, How Can We Meet Climate Goals? New research finds the United States’ energy mix is rapidly decarbonizing largely due to economics, as coal-fired generation keeps retiring in favor of cheaper clean energy additions, but U.S. greenhouse gas (GHG) emissions still rose 2.5% in 2018.

Although that may seem counterintuitive, economic growth and extreme weather increased energy demand, despite power sector decarbonization. To help avoid dire consequences of global warming, the U.S. will need to decouple energy productivity and economic growth to accelerate emissions reductions .
Positive steps are underway, from increasing clean energy deployment to critical technology investments, and these need to be continually strengthened. In the past few years, emissions reductions have largely come from state-level action rather than federal policy. But as momentum builds...(Read More)

Weather

The AccuWeather 1-5 Day Outlook forecasts below-normal temps for the Northern half of the US. The South is expected to be at normal or above-normal temps. The 6-10 Day Outlook forecasts the Western half of the country at above-normal temps with the Center of the country at normal temps and the East, including New England at above-normal temps.

11-15 Day Outlook  forecasts the Central states to be at below-normal temps with the East Coast at normal temps. The West Coast, Arizona and New Mexico are forecast to be at above-normal temps with the balance of the West at normal temps. The 30-Day Outlook shows below-normal temps for the North-Central states with the balance of the country at normal temps except Florida, which is expected to be above-normal.

The 90-Day Outlook projects normal temps for the entire country, with the exception of the far Northwest, which is expected to be at above-normal temps.

Sustainability and Renewables



Nobel-Prize Winning Chemistry May Mean Clean Energy Breakthrough: Scientists have used a Nobel-prize winning Chemistry technique on a mixture of metals to potentially reduce the cost of fuel cells used in electric cars and reduce harmful emissions from conventional vehicles.

The researchers have translated a biological technique, which won the 2017 Nobel Chemistry Prize, to reveal atomic scale chemistry in metal nanoparticles. These materials are one of the most effective catalysts for energy converting systems such as fuel cells. It is the first time this technique has been used for this kind of research.

The particles have a complex star-shaped geometry and this new work shows that the edges and corners can have different chemistries which can now be tuned to reduce the cost of batteries and catalytic convertors.

The 2017 Nobel Prize in Chemistry was awarded to Joachim Frank, Richard Henderson and Jacques Dubochet for their role in pioneering the technique of ‘single particle reconstruction’. This electron microscopy technique has revealed the structures of a huge number of viruses and proteins but is not usually used for metals... (Read More)

This Week's Key Take-Away


Natural Gas is the benchmark fuel that electricity retailers use to estimate prices. As such, careful analysis of Natural Gas movement on the NYMEX is essential in predicting electricity prices.

Shipments of U.S. liquefied natural gas (LNG) have gathered pace in March and Europe will remain a top destination for spot cargos, with Asian prices still too low to ship the chilled fuel that far.

However, Winter demand for gas is fading, while steady supplies of gas and LNG have kept inventories well stocked, depressing European gas hub prices. This has raised the question: how many more cargos can Europe absorb? Suppliers of U.S. LNG have loaded 14 cargo ships so far in March, setting a faster pace than February when 29 ships were loaded in the entire month as storms and maintenance hampered output.

Asia remains the leading destination for LNG shipped under long-term supply contracts. But Europe and Mexico are, for now, more attractive destinations for spot cargos. On Tuesday, the Calcasieu Pass LNG project in Louisiana was authorized to export to China, South Korea and Japan, where liquefied natural gas prices are higher.