Natural Gas Weekly: August 2, 2023
The Northeast gross gas production averaged 35,053 MMcf/d in 1H23. After recovering from the strong winter weather at the beginning of the year, basin production has remained relatively flat with a small increase. The rig count in the region has been on average 49 for the past 5 months and the pipeline sample, as expected, shows the same trend as gross production. For July pipeline gas sample average 33,277 MMcf/d, as the sample coverage in the basin is close to 100%, we could potentially see that the trend might continue during August.
EIA reported a 16 Bcf storage injection for the July 21 week, putting working inventories at 2,987 Bcf. The recent light build has storage trending closer to the 5-year average but still remains 345 Bcf above after the latest EIA report. We had forecasted storage will end July at 3,056 Bcf/d which will likely need to be revised downward given the latest data.
Natural Gas Weekly
East Daley Analytics' Natural Gas Weekly provides a weekly update to our monthly Macro Supply and Demand Forecast. The update covers rigs, flows, production, prices and capacity constraints that materially change our view on supply and demand. This update highlights what investors and traders need to monitor in natural gas to ensure they are on the right side of the market. Subscribe to the Natural Gas Weekly.