Thursday, August 2, 2012

Natural Gas Reacts Poorly to Storage Report

"The U.S. Energy Information Administration said natural gas stockpiles rose by 28 billion cubic feet in the week ended July 27, topping the 23-bcf build forecast in a Dow Jones Newswires survey of analysts and traders."

5 comments:

C. Fischer said...

5 BCF and it sells off 8% - it's profit taking. I think the fundamental picture keeps getting better. By the end of the summer we'll be back within the "normal range" of storage limits. The rig count continues to drop like a rock. I think most of the planned capacity set to go offline this year
http://www.eia.gov/todayinenergy/detail.cfm?id=7290&src=email
will probably happen after the Summer season ends (I wish I had more data on this - I know from a couple anecdotal stories that the plants planned to close in September/October.)

CP said...

Thanks.

So, about 3% of coal capacity is retiring. Amazing that the plants are almost 60 years old.

Also interesting to know about the Form EIA-860, "Annual Electric Generator Report."

What if we have a warm winter again?

C. Fischer said...

It's definitely possible that we do. I think we see $2-3 gas again in that scenario. If we get a really cold winter, I think we could see $5-6 gas.

Should be interesting in either case.

C. Fischer said...

http://www.power-eng.com/news/2012/07/30/progress-energy-carolinas-announces-accelerated-coal-plant-closings.html

CP said...

" The Robinson coal plant in South Carolina began operation in 1960 and is located on the same site as the 724-MW Robinson nuclear plant. The decision to take the 52-year-old Robinson coal plant offline was made due to pending changes in environmental regulations and other rising costs for smaller, older technology plants. The cost of adding state-of-the-art emission controls on the small unit would be hundreds of millions of dollars. And the potential for additional emission regulations in the future would increase operating costs even further."