March 8, 2023
March 2023 Energy News
As we move into spring, prices are reflecting a warmer-than-normal winter, with Henry Hub trading below $3 per million British thermal units (MMBtu). Lower market prices have pressured U.S. producers to ease production in an attempt to bring prices in line.
Domestic Demand
Although total U.S. consumption rose week over week to 91.6 billion cubic feet (Bcf), consumption was down 10 percent from last year. Last week’s growth in consumption was caused by a 5.5 percent increase in power generation and a 4.7 percent increase in residential and commercial consumption.
The Energy Information Administration (EIA) reported an 81 Bcf withdrawal from U.S. natural gas storage facilities this past week. While this was higher than expected, the draw was still significantly lower than the five-year average of 134 Bcf.
International Demand
On the international stage, as China’s economy continues to recover from recently lifted COVID restrictions, its President, Xi Jinping, set the country’s goal for economic growth. As the second largest economy comes back to life, so will their need for powering their economy. The country, which is likely to regain its title as the largest importer of LNG, is expecting consumption of natural gas to return to pre-pandemic levels over the next year.
Last month, the largest export facility in the U.S., Freeport, was approved to reopen after an eight-month shutdown due to damage caused by a fire. As the facility continues to return to normal operations, which energy regulators and analysts expect to happen in the coming weeks, we can expect more natural gas diverted to meet the facility’s capacity of 2.1 Bcf per day.
Production & Supply
With natural gas prices trading at Henry Hub under $3 per MMBtu, U.S. production companies are beginning to reduce production capabilities to bring market prices up. In fact, last month represented the third month in a row of fewer oil and gas rigs in operation. While the rig count is still up more than 15 percent from last year, this continued trend could impact prices.
Additionally, the U.S. is finishing the heating season with storage nearly 20 percent higher than the five-year average, with 2,114 Bcf of working gas in underground storage.
If you have any questions regarding this month’s newsletter, please contact your local sales representative at 1-888-510-9315.
Market Data:
March 8, 2023
March 8, 2023
March 2023 Energy News
As we move into spring, prices are reflecting a warmer-than-normal winter, with Henry Hub trading below $3 per million British thermal units (MMBtu). Lower market prices have pressured U.S. producers to ease production in an attempt to bring prices in line.
Domestic Demand
Although total U.S. consumption rose week over week to 91.6 billion cubic feet (Bcf), consumption was down 10 percent from last year. Last week’s growth in consumption was caused by a 5.5 percent increase in power generation and a 4.7 percent increase in residential and commercial consumption.
The Energy Information Administration (EIA) reported an 81 Bcf withdrawal from U.S. natural gas storage facilities this past week. While this was higher than expected, the draw was still significantly lower than the five-year average of 134 Bcf.
International Demand
On the international stage, as China’s economy continues to recover from recently lifted COVID restrictions, its President, Xi Jinping, set the country’s goal for economic growth. As the second largest economy comes back to life, so will their need for powering their economy. The country, which is likely to regain its title as the largest importer of LNG, is expecting consumption of natural gas to return to pre-pandemic levels over the next year.
Last month, the largest export facility in the U.S., Freeport, was approved to reopen after an eight-month shutdown due to damage caused by a fire. As the facility continues to return to normal operations, which energy regulators and analysts expect to happen in the coming weeks, we can expect more natural gas diverted to meet the facility’s capacity of 2.1 Bcf per day.
Production & Supply
With natural gas prices trading at Henry Hub under $3 per MMBtu, U.S. production companies are beginning to reduce production capabilities to bring market prices up. In fact, last month represented the third month in a row of fewer oil and gas rigs in operation. While the rig count is still up more than 15 percent from last year, this continued trend could impact prices.
Additionally, the U.S. is finishing the heating season with storage nearly 20 percent higher than the five-year average, with 2,114 Bcf of working gas in underground storage.
If you have any questions regarding this month’s newsletter, please contact your local sales representative at 1-888-510-9315.
March 8, 2023
March 2023 Energy News
As we move into spring, prices are reflecting a warmer-than-normal winter, with Henry Hub trading below $3 per million British thermal units (MMBtu). Lower market prices have pressured U.S. producers to ease production in an attempt to bring prices in line.
Domestic Demand
Although total U.S. consumption rose week over week to 91.6 billion cubic feet (Bcf), consumption was down 10 percent from last year. Last week’s growth in consumption was caused by a 5.5 percent increase in power generation and a 4.7 percent increase in residential and commercial consumption.
The Energy Information Administration (EIA) reported an 81 Bcf withdrawal from U.S. natural gas storage facilities this past week. While this was higher than expected, the draw was still significantly lower than the five-year average of 134 Bcf.
International Demand
On the international stage, as China’s economy continues to recover from recently lifted COVID restrictions, its President, Xi Jinping, set the country’s goal for economic growth. As the second largest economy comes back to life, so will their need for powering their economy. The country, which is likely to regain its title as the largest importer of LNG, is expecting consumption of natural gas to return to pre-pandemic levels over the next year.
Last month, the largest export facility in the U.S., Freeport, was approved to reopen after an eight-month shutdown due to damage caused by a fire. As the facility continues to return to normal operations, which energy regulators and analysts expect to happen in the coming weeks, we can expect more natural gas diverted to meet the facility’s capacity of 2.1 Bcf per day.
Production & Supply
With natural gas prices trading at Henry Hub under $3 per MMBtu, U.S. production companies are beginning to reduce production capabilities to bring market prices up. In fact, last month represented the third month in a row of fewer oil and gas rigs in operation. While the rig count is still up more than 15 percent from last year, this continued trend could impact prices.
Additionally, the U.S. is finishing the heating season with storage nearly 20 percent higher than the five-year average, with 2,114 Bcf of working gas in underground storage.
If you have any questions regarding this month’s newsletter, please contact your local sales representative at 1-888-510-9315.
March 8, 2023
March 2023 Energy News
As we move into spring, prices are reflecting a warmer-than-normal winter, with Henry Hub trading below $3 per million British thermal units (MMBtu). Lower market prices have pressured U.S. producers to ease production in an attempt to bring prices in line.
Domestic Demand
Although total U.S. consumption rose week over week to 91.6 billion cubic feet (Bcf), consumption was down 10 percent from last year. Last week’s growth in consumption was caused by a 5.5 percent increase in power generation and a 4.7 percent increase in residential and commercial consumption.
The Energy Information Administration (EIA) reported an 81 Bcf withdrawal from U.S. natural gas storage facilities this past week. While this was higher than expected, the draw was still significantly lower than the five-year average of 134 Bcf.
International Demand
On the international stage, as China’s economy continues to recover from recently lifted COVID restrictions, its President, Xi Jinping, set the country’s goal for economic growth. As the second largest economy comes back to life, so will their need for powering their economy. The country, which is likely to regain its title as the largest importer of LNG, is expecting consumption of natural gas to return to pre-pandemic levels over the next year.
Last month, the largest export facility in the U.S., Freeport, was approved to reopen after an eight-month shutdown due to damage caused by a fire. As the facility continues to return to normal operations, which energy regulators and analysts expect to happen in the coming weeks, we can expect more natural gas diverted to meet the facility’s capacity of 2.1 Bcf per day.
Production & Supply
With natural gas prices trading at Henry Hub under $3 per MMBtu, U.S. production companies are beginning to reduce production capabilities to bring market prices up. In fact, last month represented the third month in a row of fewer oil and gas rigs in operation. While the rig count is still up more than 15 percent from last year, this continued trend could impact prices.
Additionally, the U.S. is finishing the heating season with storage nearly 20 percent higher than the five-year average, with 2,114 Bcf of working gas in underground storage.
If you have any questions regarding this month’s newsletter, please contact your local sales representative at 1-888-510-9315.
March 8, 2023
March 2023 Energy News
As we move into spring, prices are reflecting a warmer-than-normal winter, with Henry Hub trading below $3 per million British thermal units (MMBtu). Lower market prices have pressured U.S. producers to ease production in an attempt to bring prices in line.
Domestic Demand
Although total U.S. consumption rose week over week to 91.6 billion cubic feet (Bcf), consumption was down 10 percent from last year. Last week’s growth in consumption was caused by a 5.5 percent increase in power generation and a 4.7 percent increase in residential and commercial consumption.
The Energy Information Administration (EIA) reported an 81 Bcf withdrawal from U.S. natural gas storage facilities this past week. While this was higher than expected, the draw was still significantly lower than the five-year average of 134 Bcf.
International Demand
On the international stage, as China’s economy continues to recover from recently lifted COVID restrictions, its President, Xi Jinping, set the country’s goal for economic growth. As the second largest economy comes back to life, so will their need for powering their economy. The country, which is likely to regain its title as the largest importer of LNG, is expecting consumption of natural gas to return to pre-pandemic levels over the next year.
Last month, the largest export facility in the U.S., Freeport, was approved to reopen after an eight-month shutdown due to damage caused by a fire. As the facility continues to return to normal operations, which energy regulators and analysts expect to happen in the coming weeks, we can expect more natural gas diverted to meet the facility’s capacity of 2.1 Bcf per day.
Production & Supply
With natural gas prices trading at Henry Hub under $3 per MMBtu, U.S. production companies are beginning to reduce production capabilities to bring market prices up. In fact, last month represented the third month in a row of fewer oil and gas rigs in operation. While the rig count is still up more than 15 percent from last year, this continued trend could impact prices.
Additionally, the U.S. is finishing the heating season with storage nearly 20 percent higher than the five-year average, with 2,114 Bcf of working gas in underground storage.
If you have any questions regarding this month’s newsletter, please contact your local sales representative at 1-888-510-9315.
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