February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
Market Data:
February 8, 2024
February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
Market Data:
February 8, 2024
February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
February 8, 2024
February 2024 – Energy News
As we approach the third anniversary of Winter Storm Uri, the U.S. continues to experience volatile weather patterns that cause sudden spikes in demand. Last month, the U.S. faced two major winter storms, creating cold and challenging conditions that affected over 100 million people across the U.S. and Canada.
On the international front, we will explain the impact of the permit pause for new liquified natural gas (LNG) export facilities.
Record Domestic Demand
Over the last month, U.S. natural gas demand peaked as millions of Americans faced snow, freezing rain, and frigid temperatures. Total demand surged to a daily average of 150.2 billion cubic feet (Bcf) for the week of January 11th to January 17th, marking an almost 25 percent increase compared to the same period last year and a 15 percent rise from the preceding week. Due to this demand, the U.S. saw the 3rd largest withdrawal of natural gas storage on record. Currently, the overall natural gas demand stands at 117.1 Bcf, but forecasts indicate the possibility of another winter storm later this month, and the anticipation of such conditions could further escalate demand again.
International Demand
On the international front, the Biden Administration’s pause on permits for new LNG export facilities has taken center stage. Since the U.S. began exporting LNG in February 2016, it has rapidly grown to become the largest exporter in 2023, with 86 million tons, surpassing Qatar and Australia.
Since the invasion of Ukraine by Russia, U.S. LNG has helped bring energy security to Europe, with more than 60 percent of exports from the U.S. going to help fuel Europe. According to Reuters (Rashad & Abnett, 2024), a European Commission spokesperson told “Reuters the U.S. decision "will not have any short-to-medium term impacts" on the EU's security of gas supply.”
Even as new projects face a pause, the U.S. is still expanding its LNG capacity. Jacob Mandel, Senior Associate at Aurora Energy Research, emphasized the ongoing construction and approvals for numerous U.S. projects. "There's a number of U.S. projects that are already under construction or that already have approval," Mandel stated, highlighting the persistent growth in the sector.
Production & Supply
As of the start of 2024, U.S. storage levels stood at 13 percent above the five-year average. However, due to the extensive withdrawal of natural gas, the current storage levels have been reduced to just 5 percent above the five-year average. Presently, there is an additional 54 Bcf of natural gas stored compared to the previous year, totaling 2,659 Bcf.
U.S. producers are still reducing natural gas rigs, experiencing an almost 26 percent drop from last year, and currently operating with 119 rigs. The drop-in rig activity aligns with the overall trend, and despite the weather challenges, the industry is adapting to maintain a balanced supply.
If you have any questions about the information in this newsletter or would like to talk to someone about your natural gas, please call your sales representative.
Reference: Rashad, A., & Abnett, K. (2024, January 16). U.S. natural gas demand eyes record as Arctic blast dents output. Reuters. https://www.reuters.com/business/energy/us-natural-gas-demand-eyes-record-arctic-blast-dents-output-2024-01-16/
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