2019-07-20 12:50:00
U.S. GAS PRICES DOWN TO $2.37 MMBTU
U.S. EIA- In its July 2019 Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts Henry Hub natural gas spot prices for June, July, and August this year will average $2.37 per million British thermal units (MMBtu). If realized, this price would be the lowest summer average Henry Hub natural gas price since 1998. EIA expects Henry Hub natural gas prices will be 55 cents/MMBtu, about 19%, lower than last summer's average.
In the July STEO, EIA revised its forecast for 2019 Henry Hub natural gas prices down from the June STEO following three consecutive months of price declines. Prices in June averaged $2.40/MMBtu and have declined by 19% since March.
Spot prices at key trading hubs across the country have traded close to the Henry Hub basis. Prices at the Transcontinental Pipeline Zone 6 trading point for New York City and the Chicago Citygate were both at $2.12/MMBtu, the lowest June average price and a decrease of 25% and 23%, respectively, from June 2018. The PG&E Citygate near San Francisco had the highest June average price at $2.59/MMBtu, a 14% decrease from last June.
The recent natural gas price declines reflect relatively mild weather for the start of summer that led to lower than expected natural gas-fired electricity generation, which allowed natural gas inventory injections to outpace the previous five-year average rate. Between April and June, cumulative net injections into underground storage fields have exceeded the five-year average by 41%, reducing the current five-year average deficit by more than 300 billion cubic feet (Bcf). In addition to the recent price declines, the lower price forecast reflects EIA's updated assessment of U.S. drilling activity and average well productivity, both of which are higher than previously assumed.
However, if summer temperatures are warmer than expected, electricity consumption, natural gas-fired electricity generation, and, ultimately, natural gas prices could be higher than forecast.
EIA expects that as supply growth begins to moderate in late 2019 and in 2020, natural gas prices will likely increase. EIA forecasts that Henry Hub natural gas spot prices will average $2.50/MMBtu in the second half of 2019 and $2.77/MMBtu in 2020.
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Earlier:
2019, July, 12, 08:05:00
OIL, GAS IS A KEY
The Organisation of the Petroleum Exporting Countries on Monday said that oil and gas remained part of key solutions in combating climate change. Secretary-General of the organisation, Mr Mohammad Barkindo, stated this in Vienna while speaking against the backdrop of mass mobilisation of civil society campaigns against the oil industry.
2019, July, 9, 16:50:00
U.S. LNG DEMAND UP
Demand hit a single-day record high just below 6.4 Bcf/d on July 4 and was estimated at just under that level Monday, data compiled by S&P Global Platts Analytics shows.
2019, July, 2, 14:30:00
U.S. FOSSIL FUELS UP
Fossil fuels—petroleum, natural gas, and coal—have accounted for at least 80% of energy consumption in the United States for well over a century.
2019, July, 1, 11:30:00
U.S. GAS PRODUCTION UP 12%
In April 2019, for the 24th consecutive month, dry natural gas production increased year to year for the month. The preliminary level for dry natural gas production in April 2019 was 2,708 billion cubic feet (Bcf), or 90.3 Bcf/d. This level was 9.8 Bcf/d (12.2%) higher than the April 2018 level of 80.4 Bcf/d.
2019, June, 25, 12:45:00
GAS DEMAND WILL UP 46%
Dr. Sentyurin also highlighted that - according to the Forum’s projections - by 2040, the demand for natural gas is expected to increase at an annual average pace of 1.7%, corresponding to overall growth of 46%. Most of this demand growth will come from the Asia-Pacific region, with Europe continuing to be an attractive market for many gas producers.
