Natural Gas Storage Outlook Promising Despite Record Heat

According to its most recent Short-Term Energy Outlook, the Energy Information Administration (EIA) says that even though storage inventories in April 2011 were 11 percent below last year’s levels, inventories will approach record-high levels in the second half of the year.

Most analysts are expecting storage inventory injections to increase substantially in the next 2-3 months, erasing the year-on-year deficit. These projections stem from the anticipation of more-than-ample supplies, sluggish demand, the return of nuclear power to the power grid, normal summer temperatures, and fewer hurricane-related disruptions than in previous years because of an increase in onshore supplies.

Valerie Wood, President of Energy Solutions, Inc., commented on the projected price impact stating, “The pace of storage injections is likely to pick up dramatically as nuclear power returns to the electric grid and moderating temperatures reduce air-conditioning demand, which is typically met through the use of natural gas-fired generation.”

Additional information about natural gas storage inventories, production levels, rig counts, demand issues, price trends and much more can be found in the Monthly Edition of The Advisor. Take a FREE, no-obligation 60-day trial to The Advisor and receive the most recent Weekly Edition, as well as the upcoming Monthly Edition for June, which contains additional insight into why production levels and storage inventories will bring prices back down to below $4 per MMBtu by the fall of 2011.  Learn more by visiting www.energysolutionsinc.com.

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About Energy Solutions, Inc.

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 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.