Natural Gas Storage Inventories Capable of Setting New Record

The summer of 2011 was one of the hottest summers in the past 60 years, and in early June, the year-on-year storage inventory deficit was 275 Bcf. Even so, storage injections continued at a very robust pace. As of October 14, 2011, natural gas storage inventories have reached 3,524 Bcf.  The year-on-year storage deficit is now just 46 Bcf, and by the end of October, this deficit will likely be erased, or possibly even have positive gains.

Initial weather forecasts call for a slower start to winter, which means injections could continue into the month of November. Last year storage inventories reached an all-time peak of 3,843 Bcf in November. Storage inventories are now within the range of challenging this all-time peak. 

In response to these recent developments, Valerie Wood, President of Energy Solutions, Inc., commented on the potential price impact. “High storage injections again send a signal that there are no concerns over the market’s ability to meet winter demand. The longer injections continue, the more natural gas prices will be under pressure to remain at lower price levels. However, once the snow flies, speculators are expected to move prices higher.”  

Additional information about natural gas storage inventories, price trends, demand issues, production levels, rig counts, 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 Monthly Edition for October, which contains additional insight into bearish, bullish and neutral factors that affect pricing within the Natural Gas Industry. 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.