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Winter Gas Supply Success Noted

U.S. shale output overcomes colder-than-normal weather


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Producer associations said the U.S. gas industry performed reliably despite colder-than-normal temperatures and numerous record-setting demand days this winter.

The National Climatic Data Center has reported that energy demand was 27% higher than average. Seven Midwestern states experienced a top 10 cold winter. The Northeast, High Plains and the South were colder than normal with frequent spells of unusual cold and snow.

Bentek Energy said peak-day gas use in January was 20 Bcfd (566 x 106m3/d) more than normal and monthly consumption was nearly 3.2 Tcf (90.6 x 109m3), which was 500 Bcf (14.1 x 109m3) higher than the January average for the past 10 years.

Barry Russell, president of the Independent Petroleum Association of America, said, “The shale technology revolution has made record amounts of natural gas available to the domestic market. For the first time in 25 years, we are producing more than 94% of the nation’s natural gas from resources here at home. Even during one of the nation’s coldest winters, this abundance has created a dependable supply of fuel.”

Dena Wiggins, president of the Natural Gas Supply Association, said, “Although city-gate prices increased in the coldest regions, where pipeline capacity constraint is prevalent, wholesale price increases at Henry Hub were muted compared with pre-shale gas cold spells. And a glance at the forward price strip shows natural gas priced below $5 as far out as 2017.”

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