Natural gas inventories lower than normal, EIA reports
According to the Energy Information Agency’s Short-Term Energy Outlook (STEO), natural gas inventories will reach 3,263 billion cubic feet (Bcf) by the end of October – the lowest amount for that period since 2005.
Natural gas is taken from storage facilities during high demand periods and injected into storage facilities during times of low demand. Natural gas is pumped into storage facilities from April through October. In 2018, relatively cold winter weather led to more withdrawals as consumers required more heat, which caused inventories to drop. Also, heavy natural gas withdrawals in January 2018, contributed to lower October inventories. U.S. consumption of natural gas is about 30 percent to 35 percent higher in the winter compared to the spring and fall months.
Increases in U.S. domestic production of natural gas may have reduced the need for operators to store as much natural gas. U.S. dry natural gas production will average a record 82.7 Bcf/d in 2018, an 11% increase from 2017, the EIA report said.
With production outpacing consumption, the United States is now a net exporter of natural gas. U.S. gross exports of natural gas to average 10.1 Bcf/d in 2018, EIA reports. This is a 16 percent increase from the previous year, with most of the growth in exports of liquefied natural gas.
