About once a month, I like to look at the natural gas market just to see where we are at. This time of year, the US typically experiences huge builds in supply because we are past the heating season and have yet to feel the searing temperatures that require heavy air-conditioner usage.
The Energy Information Administration reported that reserves in the latest week surged by 103 billion cubic feet (bcf) and are 514 bcf above a year ago and 387 bcf ahead of the five-year average for this time of year.
Working Gas in Underground Storage Compared with 5-Year Range 
Slack industrial demand and rising production a year ago account for most of the excess quantities of natural gas heading into summer. Unless the country bakes in extremely hot temperatures during the next three months or major hurricanes rock the Gulf Coast and shut in supplies, consumers are likely to benefit in the form of lower prices due to surplus stockpiles heading into next winter.
But prices could find some support since natural gas rig counts have fallen for 24 consecutive weeks, according to the EIA. The agency also noted that the dramatic drop in prices over the past year increases the potential for displacing coal-fired power generation with natural-gas-fired generation.
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