November 15, 2023
MSBA Newsletter Q4 2023 Energy News
As we enter the winter season, shifts in temperature and storage dynamics are shaping the landscape of the U.S. natural gas market. From adjustments in production to the reopening of major export facilities, these factors are influencing market conditions and challenging U.S. producers to navigate a dynamic energy landscape.
Production & Demand
In the final week of October, below-average temperatures affected 230 million people in the U.S., resulting in some cities hitting record lows significantly below freezing. This cold spell led to a surge in heating demand for the residential and commercial sectors, reaching 24 billion cubic feet (Bcf) compared to the prior year's 17.1 Bcf, bringing the total daily U.S. demand to 108.9 Bcf.
Last year, U.S. storage levels were nearly four percent below the 5-year average at 3,501 Bcf heading into winter. After a warmer-than-normal winter and continued production growth, the U.S. is entering this winter in a much better position, with storage 5.7 percent above the 5-year average at 3,779 Bcf.
With ample storage throughout 2023, this has negatively impacted prices for U.S. producers, pushing them to reduce natural gas rig count by 25 percent in hopes of raising prices.
Looking Forward
The U.S. continues to lead the world in liquefied natural gas (LNG) exports, and the reopening of one of the largest export facilities, Freeport LNG, will contribute to this growth. This Texas facility was closed for eight months due to a fire, but it's now set to reopen for the upcoming high-demand winter season. When operating at full capacity, this plant can convert 2.1 Bcf of gas to meet the daily needs of approximately 10 million U.S. homes.
As we get further into the winter heating season, weather remains a crucial market variable. This year, El Nino is in place for the first time in four years. This weather phenomenon is one of three phases that occurs when ocean temperatures are warmer than normal for an extended period of time. What does that mean for this winter? Although no two El Nino winters are the same, this weather pattern typically means warmer temperatures in the northern U.S. and cooler temperatures in the south.
Missouri School Boards’ Association Natural Gas Consortium
We hope you found this information helpful, and as always, if you have any questions about your natural gas or the market, please contact Alan Pederson at 402-915-8378 and alan.pederson@woodriverenergy.com.
Market Data:
November 15, 2023
November 15, 2023
MSBA Newsletter Q4 2023 Energy News
As we enter the winter season, shifts in temperature and storage dynamics are shaping the landscape of the U.S. natural gas market. From adjustments in production to the reopening of major export facilities, these factors are influencing market conditions and challenging U.S. producers to navigate a dynamic energy landscape.
Production & Demand
In the final week of October, below-average temperatures affected 230 million people in the U.S., resulting in some cities hitting record lows significantly below freezing. This cold spell led to a surge in heating demand for the residential and commercial sectors, reaching 24 billion cubic feet (Bcf) compared to the prior year's 17.1 Bcf, bringing the total daily U.S. demand to 108.9 Bcf.
Last year, U.S. storage levels were nearly four percent below the 5-year average at 3,501 Bcf heading into winter. After a warmer-than-normal winter and continued production growth, the U.S. is entering this winter in a much better position, with storage 5.7 percent above the 5-year average at 3,779 Bcf.
With ample storage throughout 2023, this has negatively impacted prices for U.S. producers, pushing them to reduce natural gas rig count by 25 percent in hopes of raising prices.
Looking Forward
The U.S. continues to lead the world in liquefied natural gas (LNG) exports, and the reopening of one of the largest export facilities, Freeport LNG, will contribute to this growth. This Texas facility was closed for eight months due to a fire, but it's now set to reopen for the upcoming high-demand winter season. When operating at full capacity, this plant can convert 2.1 Bcf of gas to meet the daily needs of approximately 10 million U.S. homes.
As we get further into the winter heating season, weather remains a crucial market variable. This year, El Nino is in place for the first time in four years. This weather phenomenon is one of three phases that occurs when ocean temperatures are warmer than normal for an extended period of time. What does that mean for this winter? Although no two El Nino winters are the same, this weather pattern typically means warmer temperatures in the northern U.S. and cooler temperatures in the south.
Missouri School Boards’ Association Natural Gas Consortium
We hope you found this information helpful, and as always, if you have any questions about your natural gas or the market, please contact Alan Pederson at 402-915-8378 and alan.pederson@woodriverenergy.com.
November 15, 2023
MSBA Newsletter Q4 2023 Energy News
As we enter the winter season, shifts in temperature and storage dynamics are shaping the landscape of the U.S. natural gas market. From adjustments in production to the reopening of major export facilities, these factors are influencing market conditions and challenging U.S. producers to navigate a dynamic energy landscape.
Production & Demand
In the final week of October, below-average temperatures affected 230 million people in the U.S., resulting in some cities hitting record lows significantly below freezing. This cold spell led to a surge in heating demand for the residential and commercial sectors, reaching 24 billion cubic feet (Bcf) compared to the prior year's 17.1 Bcf, bringing the total daily U.S. demand to 108.9 Bcf.
Last year, U.S. storage levels were nearly four percent below the 5-year average at 3,501 Bcf heading into winter. After a warmer-than-normal winter and continued production growth, the U.S. is entering this winter in a much better position, with storage 5.7 percent above the 5-year average at 3,779 Bcf.
With ample storage throughout 2023, this has negatively impacted prices for U.S. producers, pushing them to reduce natural gas rig count by 25 percent in hopes of raising prices.
Looking Forward
The U.S. continues to lead the world in liquefied natural gas (LNG) exports, and the reopening of one of the largest export facilities, Freeport LNG, will contribute to this growth. This Texas facility was closed for eight months due to a fire, but it's now set to reopen for the upcoming high-demand winter season. When operating at full capacity, this plant can convert 2.1 Bcf of gas to meet the daily needs of approximately 10 million U.S. homes.
As we get further into the winter heating season, weather remains a crucial market variable. This year, El Nino is in place for the first time in four years. This weather phenomenon is one of three phases that occurs when ocean temperatures are warmer than normal for an extended period of time. What does that mean for this winter? Although no two El Nino winters are the same, this weather pattern typically means warmer temperatures in the northern U.S. and cooler temperatures in the south.
Missouri School Boards’ Association Natural Gas Consortium
We hope you found this information helpful, and as always, if you have any questions about your natural gas or the market, please contact Alan Pederson at 402-915-8378 and alan.pederson@woodriverenergy.com.
November 15, 2023
MSBA Newsletter Q4 2023 Energy News
As we enter the winter season, shifts in temperature and storage dynamics are shaping the landscape of the U.S. natural gas market. From adjustments in production to the reopening of major export facilities, these factors are influencing market conditions and challenging U.S. producers to navigate a dynamic energy landscape.
Production & Demand
In the final week of October, below-average temperatures affected 230 million people in the U.S., resulting in some cities hitting record lows significantly below freezing. This cold spell led to a surge in heating demand for the residential and commercial sectors, reaching 24 billion cubic feet (Bcf) compared to the prior year's 17.1 Bcf, bringing the total daily U.S. demand to 108.9 Bcf.
Last year, U.S. storage levels were nearly four percent below the 5-year average at 3,501 Bcf heading into winter. After a warmer-than-normal winter and continued production growth, the U.S. is entering this winter in a much better position, with storage 5.7 percent above the 5-year average at 3,779 Bcf.
With ample storage throughout 2023, this has negatively impacted prices for U.S. producers, pushing them to reduce natural gas rig count by 25 percent in hopes of raising prices.
Looking Forward
The U.S. continues to lead the world in liquefied natural gas (LNG) exports, and the reopening of one of the largest export facilities, Freeport LNG, will contribute to this growth. This Texas facility was closed for eight months due to a fire, but it's now set to reopen for the upcoming high-demand winter season. When operating at full capacity, this plant can convert 2.1 Bcf of gas to meet the daily needs of approximately 10 million U.S. homes.
As we get further into the winter heating season, weather remains a crucial market variable. This year, El Nino is in place for the first time in four years. This weather phenomenon is one of three phases that occurs when ocean temperatures are warmer than normal for an extended period of time. What does that mean for this winter? Although no two El Nino winters are the same, this weather pattern typically means warmer temperatures in the northern U.S. and cooler temperatures in the south.
Missouri School Boards’ Association Natural Gas Consortium
We hope you found this information helpful, and as always, if you have any questions about your natural gas or the market, please contact Alan Pederson at 402-915-8378 and alan.pederson@woodriverenergy.com.
November 15, 2023
MSBA Newsletter Q4 2023 Energy News
As we enter the winter season, shifts in temperature and storage dynamics are shaping the landscape of the U.S. natural gas market. From adjustments in production to the reopening of major export facilities, these factors are influencing market conditions and challenging U.S. producers to navigate a dynamic energy landscape.
Production & Demand
In the final week of October, below-average temperatures affected 230 million people in the U.S., resulting in some cities hitting record lows significantly below freezing. This cold spell led to a surge in heating demand for the residential and commercial sectors, reaching 24 billion cubic feet (Bcf) compared to the prior year's 17.1 Bcf, bringing the total daily U.S. demand to 108.9 Bcf.
Last year, U.S. storage levels were nearly four percent below the 5-year average at 3,501 Bcf heading into winter. After a warmer-than-normal winter and continued production growth, the U.S. is entering this winter in a much better position, with storage 5.7 percent above the 5-year average at 3,779 Bcf.
With ample storage throughout 2023, this has negatively impacted prices for U.S. producers, pushing them to reduce natural gas rig count by 25 percent in hopes of raising prices.
Looking Forward
The U.S. continues to lead the world in liquefied natural gas (LNG) exports, and the reopening of one of the largest export facilities, Freeport LNG, will contribute to this growth. This Texas facility was closed for eight months due to a fire, but it's now set to reopen for the upcoming high-demand winter season. When operating at full capacity, this plant can convert 2.1 Bcf of gas to meet the daily needs of approximately 10 million U.S. homes.
As we get further into the winter heating season, weather remains a crucial market variable. This year, El Nino is in place for the first time in four years. This weather phenomenon is one of three phases that occurs when ocean temperatures are warmer than normal for an extended period of time. What does that mean for this winter? Although no two El Nino winters are the same, this weather pattern typically means warmer temperatures in the northern U.S. and cooler temperatures in the south.
Missouri School Boards’ Association Natural Gas Consortium
We hope you found this information helpful, and as always, if you have any questions about your natural gas or the market, please contact Alan Pederson at 402-915-8378 and alan.pederson@woodriverenergy.com.
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