Verona, WI — October 8, 2009 – With its most recent natural gas injection report, the Energy Information Administration (EIA) announced that natural gas storage inventories have reached 3,658 Bcf. Until this year, inventories had never exceeded 3,545 Bcf. According to the EIA, the maximum level that storage caverns can hold is 3,889 Bcf, and that level could be tested this year.
“It’s ironic that storage inventories are at the highest level ever and natural gas prices on the futures market don’t seem to care,” says Valerie Wood, President of Energy Solutions, Inc. “Right now, storage inventories are taking a back seat to the perception that an economic rebound is around the corner. That perception may still be a bit premature.”
With the exception of the service sector, recent economic data hasn’t been that rosy. Job losses rose and consumer confidence fell. “The market wants to move higher on enthusiasm, but it is ultimately going to need concrete data and numbers to support it,” says Wood. “Right now, prices have been able to move higher on perception and the onset of colder weather, but sooner or later, the record level storage inventories will re-enter the picture. Unfortunately, that may not happen until close to the middle of winter.”
The price impact of natural gas storage and a number of other natural gas price influences are discussed in the October edition of The Advisor, a newsletter specifically written for businesses as an educational tool and guide about the natural gas industry. It keeps companies alert and aware of ever-changing conditions and costs associated with natural gas to help them make intelligent gas purchasing decisions. The Advisor is written by Valerie Wood, President of Energy Solutions, Inc., a company that specializes in helping manufacturing companies and larger users of natural gas more cost effectively purchase their natural gas supplies.
“If buyers can be patient, we believe their patience will be rewarded,” says Wood. Request a complimentary copy of the October edition of The Advisor by sending your request to request-oct-pr8@energysolutionsinc.com or call (608) 848-9859.
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About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
