Sunday, September 05, 2010
Hey, I know what we haven't done in a while: look at natural gas storage in the U.S. Coming into last winter with record high storage levels, the storage fell to below record levels, but still above 5-year averages, on the generally colder than average winter. This was despite continued weak industrial demand. However, coming into spring, storage levels rose back to record levels as weather moderated, drilling activity stabilized from the 2009 free-fall, and the economy remained weak. Now, once again, weather has played its hand with an unusually warm summer in much of the country and drawn down storage levels off the record highs of last year. Fun stuff.