EIA: Natural Gas Inventories at 29-Year High
Tuesday, February 14, 2012
The U.S. Energy Information Administration (EIA) has reported that natural gas inventories at the end of the winter heating season will be the highest since 1983.
The high level of working gas in underground storage was due to warmer-than-normal winter weather that reduced demand for gas heating, according to the EIA.
Also, the agency explained, “Increasing natural gas production, especially in the Marcellus Shale region, likely contributed to lower storage withdrawals as more gas supply in the Northeast reduced the need to bring up stored gas from the Gulf Coast.”
The EIA predicted inventories would total 2.06 Tcf at the end of March (the statistical end of the winter heating season), up 31% from a year ago and near the March 1983 record of 2.15 Tcf.
The agency said high gas stocks could put downward pressure on wholesale prices this spring because some storage operators may require customers to withdraw their stockpiled gas to ensure the reliability of the storage facility.
For more information: www.eia.gov