US natural gas inventories by region
The EIA (U.S. Energy Information Administration) divides the US into the following five natural gas storage regions:
- South Central
Below are the movements in natural gas inventories for the storage regions from March 3–10, 2017.
- East – fell by 36 Bcf (billion cubic feet) to 368 Bcf
- Midwest – fell by 22 Bcf to 557 Bcf
- Mountain – fell by 2 Bcf to 137 Bcf
- Pacific – rose by 2 Bcf to 203 Bcf
- South Central – rose by 5 Bcf to 977 Bcf
Natural gas inventories and prices
US natural gas inventories are at 2,242 Bcf for the week ending March 10, 2017—21.4% higher than their five-year average, as we discussed in the previous part of this series. High US natural gas inventories could pressure US natural gas (DGAZ) (GASL) (BOIL) (UNG) prices.
Estimates for natural gas inventories
The EIA estimates that US natural gas inventories will be at 1,805 Bcf by the end of March 2017—38.2% higher than the five-year average. High US natural gas inventories at the end of the winter heating season could pressure natural gas prices in the coming months. Inventories start to build again at the end of the winter. For more on inventories, read the previous part of this series.
The US natural gas rig count also plays a vital role in driving natural gas prices. We’ll discuss the US natural gas rig count in the next part.