2013 December 20

The Master Resource Report 2013-12-20

Happy Holidays and Best Wishes for the New Year

The Master Resource Report will be on Vacation

No report Dec. 28th or Jan. 4th

285 Bcf draw on natural gas storage.

The EIA reported yesterday that the draw on natural gas storage for the week ending December 13th was 285 Bcf. This not only set a record for the month of December it also was an all-time record draw.

This put gas in storage 13.1% below year ago levels and 7.4% below the five year average.

The comparison to the five year period from 2007-2011 is shown in the first graph (red line) to remove the storage bulge created as a result of the non-winter of 2011-12 and the shale gas production surge. This is clearly illustrated in the extreme storage bulge that developed in the spring of 2012 and is blamed for the drop of natural gas below the $2 level that year. Currently storage is running at 4% below this less distorted storage level.

Compare the December 2012 storage levels for the same period as last week. At that time storage was running 10-15% above the 5 year averages compared to this year being 13% below.

In the second graph a similar message is shown with the red dots comparing the same weeks from 2006, 2007 and 2008 at comparable levels to this December.

For a larger view click on the graph and it will open in a new window.

Gas storage graph 2013-12-20