Nat Gas News – May 1, 2017

Nat Gas News – May 1, 2017

In the News

Pennsylvania, Ohio increase natural gas production

Midland Reporter-Telegram reports: Natural gas production in Texas fell by 2.5 billion cubic feet per day in 2016, according to a report released Tuesday by the U.S. Energy Information Administration. Pennsylvania and Ohio saw increased natural gas production. Last year, both states produced 1.2 billion cubic feet more natural gas per day. The nation produced 77 billion cubic feet per day in total, down from 79 billion cubic feet per day in 2015. Pennsylvania and Ohio, which draw from the Marcellus and Utica formations, increasingly have become major players in domestic natural gas production, growing from 2 percent in 2006 to 24 percent in 2016. Pennsylvania ranks second in production behind Texas, surpassing Louisiana in 2013. Ohio is the seventh-highest natural gas-producing state, surpassing West Virginia last year. For more visit mrt.com or click http://bit.ly/2plCphh

The U.S. natural gas market, end of April 2017

Forbes reports: After trading mostly sideways for the month, May natural gas expired at $3.14, reaching a settled low of 3.04 on April 25 and a high of $3.33 on April 6. U.S. natural gas stocks ended heating season at the third highest level in 10 years. We had a 74 Bcf storage injection reported today, which was right on target with expectations. We now stand 16% above the 5-year average for gas inventories, insulating prices in the near-term. At 70-71 Bcf/d for months, however, U.S. dry production currently sits almost 3% lower than year-ago levels. Today’s market backwardation shows that the market is undersupplied and we should slow new consumption (in contrast, oil’s contango shows that the market is oversupplied). Yet, rising oil and gas rig counts (up 112% to 857 since bottoming out last May), more pipelines (e.g., a 7 Bcf/d buildout in the Marcellus region before 2018), and higher prices will increase gas output in the second half of 2017 and on into 2018. For more visit forbes.com or click http://bit.ly/2oOdOTs

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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