Natural Gas in Underground Storage

The weekly EIA Natural Gas Storage Report advised that there was an injection of 91Bcf (billion cubic feet) into Underground Storage for the week ending May 18th, 2018.

This is 6Bcf above the median forecast of a 85Bcf injection, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. The injection one year ago was 75Bcf and the 5-year average injection is 89Bcf. Storage is 804Bcf below last year for the same week and 499Bcf below the 5-year average. Working gas in storage stands at 1,629Bcf.

Natural Gas Pricing


As of 9:59AM CST, June 2018, (the prompt month) Natural Gas was trading at $2.94, +$0.14 from one week ago and the 1-Year Spread average was $2.97, +$0.13 from one week ago.

Crude Oil Pricing


As of 9:29AM CST, June, 2018, (the prompt month) Light, Sweet Crude on the NYMEX was at $70.93, -$0.89 from one week ago.

Crude Oil Inventory


US crude inventories increased by 5.8 million barrels to 438.2 million barrels for the week ended May 18th, according to data released yesterday morning by the US Department of Energy. Traders in the Reuters poll projected a decrease of 1.6 million barrels.

U.S. Rotary Rigs


U.S. Rotary Rigs drilling for natural gas were +1 at 200 for the week of May 18th. The number of rigs currently drilling for Natural Gas was 20 higher than last year’s level of 180.  US Rigs drilling for oil were unchanged at 844. There are 124 more rigs targeting oil than last year. Canadian rigs were +4 at 83 for the week. Rigs targeting oil remain at 81% of all US drilling activity.

Geopolitical


Lack of Long-Term US Energy Plan Impedes Transformative Technology: Tour a few of Cornell Engineering’s laboratories and you’ll see some amazing prototypes with the power to change the energy landscape – devices that can suck carbon out of the air and turn it into electricity, new materials for batteries and solar cells, and plans for a unique geothermal system that can heat an entire 745-acre campus.

However, the lack of a consistent energy policy and meaningful investment means many of these technologies may end up on the shelf instead of working in your home or community. It can take years for basic research to translate into deployable technology, and in many cases the research horizon does not align with policy.

Weather

The AccuWeather 1-5 day Outlook forecasts above-normal temps for all of the US with the exception of small areas in the Southeast and far West, which are expected to be at normal or below-normal temps. The 6-10 Day Outlook forecasts above-normal temps for all of the US with the exception of the Southeast and Northwest, which are expected to be at normal or below-normal temps.. The 11-15 Day Outlook forecasts normal temps for the Eastern third of the country and Northwest, with above-normal temps for the balance of the country.

The 30 and 90-day Outlook projects above-normal temps for the West and part of the East Coast of the US while the balance of the country will be at mostly normal temps. Much of the East will receive above-normal rainfall over the next 90 days.

Sustainability and Renewables

NEW YORK, May 01, 2018 (GLOBE NEWSWIRE) -- PwrCor, Inc. (OTCQB:PWCO), an advanced technology company focusing on clean, renewable energy solutions for the Waste-Heat-to-Power, Geothermal, and Solar Thermal markets, announces that it has successfully launched its breakthrough heat conversion engine technology at Surprise Valley Hot Springs in Modoc County, California.  This represents an historic step for geothermal energy in California.

The engine is the first of its kind using the Company's proprietary technology, designed and constructed by PwrCor’s team and the Southwest Research Institute in San Antonio, TX, and funded by the California Energy Commission and project participants.  The state-of-the-art engine had successfully passed a rigorous testing regimen prior to being shipped to California.

This Week's Key Takeaway


Natural Gas Prices Soar While Crude Remains Above $70: As we approach the Summer months, we are seeing crude prices remain above $70, even though this week's injection into Underground Storage was almost 6 million barrels. Additionally, Natural Gas has continued to climb and is approaching $3.00. As a result, electric prices have gone up significantly - in some markets, by as much as 60%.

Heat Rates have been unusually high this year, as warmer-than-normal temperatures are expected this Summer and there is concern about capacity - having enough electricity to satisfy demand.

On Texas' ERCOT grid, the spread between power-generation capacity and projected consumer demand is expected to be 11%, which is very tight. Ideally, the grid operator prefers to maintain a "reserve margin" of at least 13.75%. Rolling blackouts remain a possibility.


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