Natural Gas in Underground Storage

The weekly EIA Natural Gas Storage Report advised today that there was a draw of 107Bcf from Underground Storage for the week ending 12/13/19.

This is 5Bcf above the forecast of a 102Bcf draw, the average prediction of sector analysts and traders in the Dow Jones Newswires weekly survey. This compares with a draw of 132Bcf last year and a 117Bcf draw for the five-year average. Storage is 618Bcf above last year for the same week and 9Bcf below the 5-year average. Working gas in storage stands at 3,411Bcf. (Read More ...)

Natural Gas Pricing


As of 9:45AM CST, January 2020, (the prompt month) Natural Gas was trading at $2.29, +$0.01 from one week ago and the 1-Year Spread average was $2.30, + $0.01 with one week ago.

Crude Oil Pricing


As of 9:41AM CST, January, 2020, (the prompt month) Light, Sweet Crude on the NYMEX was at $61.13, +2.20 from one week ago.

Crude Oil Inventory


US crude inventories (EIA) decreased by 1.1 million barrels to 446.8 million for the week ended December 13th, according to data released yesterday morning by the US Dept of Energy. Traders in the Reuters poll projected a draw of 1.3 million barrels.

U.S. Rotary Rigs


According to the Baker Hughes Count, US Rotary Rigs targeting Natural Gas were +2 at 133 for the week ending December 6th and -65 from last year.

Rigs targeting Crude were -5 at 663. There are 214 fewer rigs targeting oil than last year. Canadian Rigs were +12 at 138 and -48 from last year. US Rigs drilling for remain at 83% of all drilling activity.

Geopolitical


New U.S. energy secretary slams NY for blocking gas pipelines: WASHINGTON (Reuters) - New U.S. Energy Secretary Dan Brouillette slammed New York state regulators on Thursday for blocking pipelines that would bring natural gas from Appalachia to New England, but did not specify whether the Trump administration could do anything to push the projects forward.

“Certain bad actors are trying to slow job creators and decrease the benefits for consumers,” said Brouillette, who succeeds former secretary Rick Perry, a figure in the House of Representatives’ impeachment probe who stepped down amid questions about his role in Ukraine.

Brouillette said the government must deal with what he called threats to energy delivery. “Due to one state’s extremist policies the entire New England region is cut off from receiving cheaper American natural gas,” said Brouilette, who was sworn in by President Donald Trump on Wednesday.

Brouillette praised the gas industry which has seen prices pushed toward a 25-year low as it is produced as a byproduct of the shale oil boom. The glut threatens to force energy companies to write off billions of dollars worth of assets.

New York State has blocked the construction of several pipelines that would transport fracked natural gas from the Marcellus shale in Pennsylvania to New England, including Williams Cos Inc’s Constitution and Northeast Supply
(Read More ...)

Weather

The AccuWeather 1-5 Day Outlook forecasts above-normal temps for the entire 2/3 of the US, and southern Florida, with the exception of the Northeast, which will be at below-normal temps. The balance of the country is expected to be at normal temps.

The 6-10 Day Outlook forecasts above-normal temps for the the entire US with the exception of the western 1/4 of the country, which is expected to be at temps.

The 11-15 Day Outlook forecasts above-normal temps for the Eastern half of the country with the exception of the Northeast, which is expected to be at normal temps. The Western half of the country is expected to be at normal temps as well, with the exception of Southern California and North and South Dakota which are expected to be below-normal.

The 30-Day Outlook shows normal temps for  the entire US with the exception of the North-Central states, which are projected to be below-normal.

The 90-Day Outlook shows normal temps for the  entire country,  except for Oregon and Washington state, which are expected to be at above-normal temps. Additionally, the Great Lakes area is expected to be at below-normal temps.

Severe Weather: There is no severe weather forecast for the next 3 days but the following 4 days shows severe thunderstorms covering the deep South and Florida, with moderate snow in the Northeast of the US (Read More ...)

Sustainable and Renewable Energy  


Gates, Bezos bet on flow battery technology, a potential rival to big bets on lithium-ion: A UN report on climate change released Nov. 26 amounted to a dire warning for Earth: Unless greenhouse gas emissions are drastically reduced, and soon, the planet faces dangerously and irreversibly high temperatures in the near future. The report also criticized the 195 nations that signed the 2015 Paris Agreement for not doing nearly enough to reduce emissions. Two days earlier the World Meteorological Organization reported that greenhouse gases reached a record high in 2018, with no sign of peaking.
The warnings, albeit ominous, may prove timely for some investors. In the wake of recent catastrophic storms in the Caribbean, along with devastating fires and mandatory power shutoffs in California, billionaire investors and venture capital firms are viewing renewable energy storage systems as a stable bet in an unstable future.

The U.S. energy storage market is expected to grow by a factor of 12 in the next five years — from 430 megawatts deployed in 2019 to more than 5 gigawatts — according to the Wood Mackenzie Energy Storage Service, a division of Wood Mackenzie Energy Research & Consultancy. The firm estimates that the total energy storage market value in the U.S. alone will be $5.3 billion by 2024.

Energy storage systems enable commercial enterprises and power-sensitive facilities, such as hospitals, to continue running when traditional power sources and generators fail or are unable to function. In addition, clean energy batteries have proved to be an environmentally safer, lower-cost alternative to carbon-based fuels. They also represent a sustainable way to deal with the intermittency of renewable energy from solar and wind. In the early-1990s, lithium-ion energy storage systems replaced nickel cadmium batteries to serve the burgeoning cellphone and consumer electronics markets. More recently, they are being used in medical equipment and electric vehicles (Read More ...)

This Week's Key Take-Away


The End of Ice: Bearing Witness and Finding Meaning in the Path of Climate Disruption is a book by embedded reporter, Dahr Jamail.  This disheartening look at global warming is at once a memoir of the author’s experiences in nature and a report of the state of the planet amid rapid climate change. This well-researched, passionate book is about the end of more than ice—Jamail takes us into the oceans and into the forests as well—and the tapestry of the author’s firsthand experiences woven among interviews with experts, from international scientists to local leaders, reveals a planet facing unprecedented challenges.

He writes, “Without question, the human race is responsible.” And among the recurring themes of this book is the lack of both awareness and action toward ameliorating climate disruption and its effects; the dedicated scientists and researchers featured in The End of Ice often express dismay over the lack of action, from political leaders to ordinary citizens.

“You don’t have to look far to see who is most to blame for warming the planet,” Jamail writes. “For nations, the US is second only to China in carbon dioxide emissions … For corporations (including state-owned entities), only 100 of them are responsible for 71 percent of total global CO2  emissions.”

The question that remains is how we might put the world back together.   The End of Ice offers no solutions, no calls to action (in fact, despite such notes as the pressure on the Brazilian government to continue deforestation “including clearing trees for cattle ranches that produce beef sold in the US and Europe,” there are no suggestions to, for example, do one’s part by consuming less meat. The book doesn’t offer hope or ideas for change but is rather a dirge for a dying planet, a meditation in grief. In his conclusion, Jamail writes of our obligations, to others and to the planet: “From this moment on, knowing what is happening to the planet, to what do I devote my life?”  (a must read for conservationists-ed)