Natural gas inventories slightly below previous five-year average, EIA says
Working natural gas in storage in the Lower 48 states as of Oct. 31, totaled 3,784 billion cubic feet (Bcf), 2 percent lower than the previous five-year end-of-October average, according to the U.S. Energy Information Administration (EIA).
Data from the EIA’s Weekly Natural Gas Storage Report data also revealed that 2017 end-of-October levels were 5 percent lower than the record-setting level of 3,977 Bcf last year.
Natural gas storage levels typically grow from April through October, although net injections sometimes occur in November.
Relatively high inventory levels in April, the beginning of the injection season, naturally result in a slower-than-average pace of injections, EIA said. Although this was the case this year, injections were insufficient to return inventories to their recent historical average.
From May 2015 through mid-September 2017, working gas levels were above the five-year average for 118 out of 122 weeks. Since late September 2017, however, working natural gas levels have been less than the previous five-year average for seven consecutive weeks, based on data through November 10.
“Natural gas storage is used to balance out seasonal fluctuations in demand,” EIA said in a news release. “Natural gas demand is highest in the winter months when residential and commercial demand for natural gas for space heating increases. Natural gas consumption in the power sector is highest in summer months when overall electricity demand is relatively high for cooling.”
Based on data through August, natural gas trade has partially offset year-over-year reductions in electric power sector consumption, as exports have grown and imports have remained relatively flat. EIA’s latest Short-Term Energy Outlook forecasts that the United States will be a net exporter of natural gas on an annual basis in 2017.
