U.S. natural gas consumers drew a new No. 3 record 326 Bcf from storage in last week’s deep freeze that blanketed the Lower 48 to the southernmost tip of the Texas-Mexico border.
The draw also wiped out nearly all of the 350 Bcf (12.4%) overhang in the year-over-year gas in storage, taking working gas to 2,856 Bcf, which is 4% more than the 2,746 Bcf in storage a year ago, according to new U.S. Energy Information Administration data.
The draw failed to overcome the No. 1 draw: the 359 Bcf taken during a Category 1 winter storm the week ending Jan. 5, 2018, according to research firm East Daley.
In the No. 2 spot for total draw is the 338 Bcf of the week of Feb. 13-19, 2021, during Category 3 Winter Storm Uri. That system also froze the U.S.; however, the Texas power grid, ERCOT, was taken offline before collapsing under the stress of demand, thus the week’s draw did not include what Texas would have used.
Prior to this past week, “those are the only two weeks in recorded history with 300-plus Bcf withdrawals,” East Daley noted in a report.
While U.S. gas production rose to a new record of more than 106 Bcf/d in December, output during Heather resulted in only 97.7 Bcf/d of supply as more than 54 Bcf was offline during the week due to equipment freeze-offs, according to Arun Jayaram, analyst for J.P. Morgan Securities, citing Wood Mackenzie data.
A record one-day demand level of 144.4 Bcf was set on Jan. 16, he added. “To put this number in context, month-to-date demand has averaged 120.9 Bcf/d,” he wrote. December demand averaged 107.0 Bcf/d.
LNG exports declined to some 12 Bcf/d during Heather from more than 15 Bcf/d reached recently. Various reports suggest plant operators were rejecting new tanker loading and selling their gas feedstock to Gulf Coast users instead.
Exports to Mexico were mostly unchanged at some 6 Bcf/d, according to Jayaram.
Recommended Reading
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.