The Energy Collective Group

This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

9,725 Subscribers

Article Post

Energy Quote of the Day: Some Thoughts on US Natural Gas Inventories as Fall Approaches

A trader shows with a pen, a graph illus

Last winter’s unusually harsh weather drew down natural gas storage inventories well below five-year average levels and left the industry assessing the degree to which producers would replenish inventories ahead of heating demand season. With summer drawing to a close and roughly 12 weeks of injections remaining before estimated peak storage, analysts are predicting where that peak storage volume is likely to land before withdrawal season kicks off in November.

“The EIA reported this morning that natural gas in storage increased 88 Bcf in the week ended August 15 to 2.555 Tcf. While summer injections continue to outpace historical trends, we remain 544 Bcf under-supplied, relative to the prior five-year average, as September looms. While tail risk of a massive under-supply heading into winter has been removed, we still believe inventories are likely to enter the drawdown period in November at/below 3.5 Tcf, which makes the natural gas market susceptible to price shocks if we see another severe winter.” – Sterne Agee analysts Tim Rezvan and Truman Hobbs

Breaking Energy Breaking Energy provides access to news, analysis, thought leadership, reference materials and discussions about the day’s most important energy market trends. Breaking Energy participants stay ahead of breaking news, participate in high-profile events and enjoy access to the central hub of the industry community as it transforms in response to fast-moving changes in energy politics and regulation, deals with financial challenges and leads technological advances.

Content Discussion

No discussions yet. Start a discussion below.