In Tim Bigler’s latest Energy Market Update, he reviews the state of the natural gas industry in the cooler months.
The three topics include:
- U.S. Natural Gas Storage:
- The Hurricane Season Forecast & How It Will Affect Natural Gas
- A Closer Look at Some Natural Gas Spot Prices
According to his end of season forecasts, natural gas storage is sitting about average (in the 5-year range).
For hurricane season, this is important because of the natural gas produced in the Gulf states. Hurricanes will no doubt affect those facilities and that production. The National Oceanic and Atmospheric Administration recently updated their hurricane outlook, forecasting 60% above normal hurricane activity.
But how much does the gulf affect natural gas? According to Bigler, it makes up about 4% of the natural gas production, which isn’t much but it could still impact pricing. However, as Bigler notes, the Northeast is the only region with a natural gas surplus, so they’re likely reversing the pipeline to flow back into the Gulf states regardless.
What Does It All Mean for Brokers?
The natural gas market may not have an immediate impact on brokers, but it will affect them eventually. Keeping up with potential game-changers like hurricane seasons gives you insights into the best times to buy and unique opportunities for your clients.
