Natural Gas in Underground Storage

The weekly EIA Natural Gas Storage Report advised that there was a withdrawal of 69Bcf (billion cubic feet) from Underground Storage for the week ending December 8th, 2017.

This is 5Bcf above the median forecast of a 64Bcf withdrawal, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. The withdrawal one year ago was 132Bcf and the 5-year average withdrawal is 78Bcf. Storage is 201Bcf below last year for the same week and 27Bcf below the 5-year average.

Natural Gas Pricing

As of 9:16AM CST, January 2018, (the prompt month) Natural Gas was trading at $2.69, -$0.11 from one week ago and the 1-Year Spread average was $2.71, -$0.11 from one week ago.

Crude Oil Pricing

As of 9:14AM CST, January, 2018, (the prompt month) Light, Sweet Crude on the NYMEX was at $56.56, +$0.21 from one week ago.

Crude Oil Inventory

US crude inventories fell by 5.1 million barrels to 443.0 million barrels for the week ended Dec 8, according to data released yesterday morning by the US Department of Energy. Traders in the Reuters poll projected a draw of 3.8M barrels.

U.S. Rotary Rigs

U.S. Rotary Rigs drilling for natural gas were unchanged at 180 for the week of December 8th. The number of rigs currently drilling for Natural Gas were 55 higher than last year’s level of 125.  US Rigs drilling for oil were +2 at 751 There are 253 more rigs targeting oil than last year. Canadian rigs were -3 at 219 for the week. Rigs targeting oil remain at 81% of all drilling activity.


U.S. Secretary of Energy Rick Perry has discussed possible U.S. exports of liquefied natural gas (LNG)
with Saudi Arabia in his meetings with top Saudi officials earlier this week, Secretary Perry said at an
energy conference in Abu Dhabi, the UAE, on Wednesday. 
Secretary Perry was taking part in the Carbon Sequestration Leadership Forum in Abu Dhabi. Before visiting the UAE, Secretary Perry was in Saudi Arabia, where he discussed energy topics with Saudi
Arabia’s Energy Minister Khalid al-Falih. Secretary Perry and al-Falih signed on Monday.


The AccuWeather 1-5 day Outlook forecasts below-normal temperatures for the Northeast and above-normal temps for the Central US and Southwest. The 6-10 Day Outlook projects 75% of the country at above-normal temps with the Northeast and part of the West at normal temps. The 11-15 day Outlook forecasts the Central US at below-normal temps with the Southeast at above-normal temps. The 30-Day Outlook projects above-normal temps for the West with below-normal temps for the North-Central states.

Sustainability and Renewables

The colossal ITER fusion power facility is halfway finished: Fusion remain the ideal solution for energy woes: Limitless production with no harmful waste. Scientists haven't managed to get a functional (and productive) installation up and running, but that hasn't stopped them from trying. The biggest project is the colossal ITER tokamak fusion reactor, an international project based in France that aims to start its first experiments in 2025. Today, its handlers announced that the massive installation is halfway finished and headed toward a completion date of 2021.

This Week's Key Takeaway

Much of the country has felt the cold of Winter begin at this point. However, Natural Gas prices have dropped significantly and are hovering around $2.70 after being at + $3.00 for many months. That is not to say that the current price will remain. As we move further into Winter, a cold-snap in the Northeast could send prices right back up beyond $3.00. Wholesale electric prices have remained extremely low in the South while the Mass Hub reports $.075/kWh in the real-time wholesale market.