México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

U.S. natural gas demand to hit record high during freeze


 

 


By Reuters

NEW YORK
Petroleumworld 01 30 2019

U.S. homes and businesses will likely use record amounts of natural gas for heating on Wednesday as an Arctic-like freeze blankets the eastern half of the country, according to energy analysts.

Harsh winds brought record-low temperatures across much of the Midwest, unnerving even residents accustomed to brutal winters and keeping them huddled indoors as offices closed and mail carriers halted their rounds.

That brutal cold could also temporarily reduce gas production by causing freeze-offs in the Marcellus and Utica shale, the nation's biggest gas producing region, in Pennsylvania, Ohio and West Virginia, the analysts warned.

Freeze-offs occur when water and other liquids in gathering lines freeze, blocking the flow of gas.

Overnight lows on Wednesday through Friday will drop to -20 degrees Fahrenheit (-29 Celsius) in Chicago and the single-digits along the East Coast from New York to Boston, according to AccuWeather, a weather forecaster.

The cold, however, will be short-lived with high temperatures this weekend in New York and Chicago expected to rise into the 40s F. The normal high at this time of year is 32 in Chicago and 39 in New York.

Financial data provider Refinitiv predicted gas demand in the Lower 48 U.S. states would hit a daily record of 145.2 billion cubic feet per day (bcfd) on Wednesday as consumers crank up their heaters to escape the bitter cold.

That would top the current all-time high of 144.6 bcfd set on Jan. 1, 2018.

One billion cubic feet is enough gas to supply about five million U.S. homes for a day.

In early estimates, gas production in the Lower 48 states will slip about 0.9 bcfd to 85.8 bcfd on Wednesday, according to Refinitiv.

That is the lowest daily output since Enbridge Inc started to restore flows through some gas pipes in Ohio following a pipeline explosion there on Jan. 21.

“Based on our analysis of historical freeze-offs, temperature conditions forecasted for Jan. 30-31 pose a risk of a freeze-off occurring in the Marcellus/Utica...in the ballpark of 1 bcfd,” said Rishi Iyengar, senior analyst natural gas markets at IHS Markit's OPIS PointLogic.

In early estimates, Marcellus/Utica production was down about 0.7 bcfd to 29.6 bcfd on Wednesday, according to Refinitiv.

Iyengar said current forecasts were not cold enough to impact production in the Bakken shale in North Dakota because drillers there have invested in equipment needed to handle extremely low temperatures.

Continental Resources Inc, an oil producer in the Bakken, said the cold weather had not impacted its crude production. Energy Transfer, which operates Bakken crude pipelines, said its operations had not been disrupted. Another energy market intelligence firm, Genscape, said it observed no weather-related impact to the region's crude production, crude-by-rail shipments and pipeline flows.

In the spot market, next-day prices for Wednesday for power at PJM West EL-PK-PJMW-SNL in western Pennsylvania and gas in Chicago NG-CG-CH-SNL both rose to their highest in a year as demand for heating spiked.

PJM, the electric grid operator for all or parts of 13 states from New Jersey to Illinois, forecast power demand would reach about 142,000 megawatts (MW) on Thursday, approaching the region's all-time winter peak of 143,295 MW on Feb. 20, 2015.

PJM said it has “robust reserves and does not expect to have any capacity issues” in meeting demand.

One megawatt can power about 1,000 homes.

 


________________________



We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

Hit your target - Advertise with us

PW 300.000 plus request per week

Reporting by Scott DiSavino in New York and Collin Eaton in Houston Editing by Alistair Bell from Reuters.

reuters.com
01 30 2019


Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites
 

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved\This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.