Despite a summer in most parts of the country and an accompanying increased use of air conditioners, the price of natural gas been heading downward in recent weeks, falling below $4 per million British thermal units.
And today’s report of another modest rise in natural gas supplies did little to boost the sagging spirits of producers. The Energy Information Administration announced that working gas in storage rose 54 billion cubic feet (bcf) in the latest week to 3,106 bcf, which is 208 bcf less than last year at this time and 169 bcf above the 5-year average of 2,937 bcf.
Not even a warm summer and increased usage was able to do much for natural gas producers, as many traders believe that an almost unlimited supply of the odorless and colorless gas is available thanks to new drilling methods that are tapping deposits contained in shale.
Unless a major hurricane comes barreling through the Gulf of Mexico and supplies are shut in, or we have an early and ferocious start to winter, prices are likely to remain at low levels compared to the past few years, providing consumers with a nice break this winter.
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