Natural gas storage continues its decline
These two graphs by now are familiar to readers of The Master Resource Report. They clearly show just how different the situation is concerning natural gas in storage this year than during the previous years when shale gas was coming into prominence.
Storage levels are now 48% below the trailing 5 year average and 49% below year ago levels. When compared to the spring of 2012 when natural gas prices dipped below $2 million Btu the amounts are even more striking. At this point in March of 2012 storage stood 2,400 Bcf. Today it is at 953 Bcf down 1,447 Bcf. At this point the natural gas markets clearly are expressing confidence that the storage will be refilled by next winter. It will be very interesting to see how this plays out thru the rest of the year.