• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 14 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 7 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 4 hours Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 4 hours Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 22 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Alt Text

Azerbaijan’s Pipeline Conundrum

Azerbaijan’s European pipeline project is…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Larger Than Expected Natural Gas Inventories Spells Trouble for Producers

In a surprising turn of events, rising supplies of oil and tepid global demand have caused prices to crash to their lowest levels in years.

And the same phenomenon may be playing out for natural gas, at least in the United States. An increase in supply and soft summer demand are combining to see rapid build ups in storage inventory, according to new data from the Energy Information Administration.

But let’s back up a minute.

The unusually cold winter of 2014 saw a record-breaking drawdown in natural gas inventories as power plants ramped up to supply enough heating, particularly on the east coast. That led to natural gas storage in the U.S. to drop to an eleven-year low, and prices temporarily spiked in response to high demand.

As the east coast thawed out, demand fell back to their usual levels, but many analysts predicted that the effects of the brutally cold winter would reverberate in the months and even years to come.

The problem comes down to whether or not production would exceed consumption to such a degree that inventories would rebuild. Normally, inventories are built between April and November, as demand is low enough to allow excess natural gas volume to be syphoned into storage. Then, with the onset of winter, inventories are drawn upon, depleting until the spring.

But many feared that the unusually cold winter of 2014 would mean that natural gas inventories were so depleted that the U.S. would struggle to refill…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News