The U.S. Ends Winter With Lowest Natural Gas In Storage in Years
U.S. Natural Gas in Storage Hits Another Low Point
According to the U.S. Energy Information Administration, Natural Gas Monthly and Weekly Natural Gas Storage Report, 2022 has seen an increase in demand for
natural gas as Americans looked to keep themselves warm and heated through this past winter, which has resulted in larger amounts of withdrawals from U.S. natural gas storages. This is not typical for most winters, and by the end of March, the least amount of natural gas was kept in U.S underground storage since 2019.
There were varying factors which caused a shortage in natural gas in storage. For starters, in January, temperatures across the entire country were much more frigid than normal. These cooling temperatures caused an increase in residential, commercial, and electric power demand for natural gas. An increase in heating demand and record-high
liquefied natural gas (LNG) exports resulted in above-average withdrawals from
working natural gas storage despite the increase in natural gas production.
Furthermore, working natural gas in underground storage facilities in the Lower 48 states totaled 1,387 billion cubic feet (Bcf) as of March 31, 2022, bringing inventories down 17% lower than the previous five-year average (2017–21) for that time of year, according to the Weekly Natural Gas Storage Report.
Working gas is the volume of natural gas in the storage reservoir that can be extracted during the normal operation of the storage facility. This is the natural gas that is being stored and withdrawn.
Are you feeling the impact of the increased demand of natural gas? Contact us now to discuss your business needs.
