Thursday, January 22, 2015

Gasoline Prices Falling – What Of Natural Gas Costs?

We have noticed that the price at the pump has fallen from $3.40 plus to under $1.80 in just a few months.  Can I say that is a very welcome change to see the need for a bank loan to fill your tank go away. But for many the use of Natural Gas for heating may just be a different story.

The U.S. Energy Information Administration (EIA) reported the morning of January 22nd, 2015 that U.S. natural gas stocks decreased by 216 billion cubic feet for the week ending January 16, compared with an expected decrease of around 236 billion cubic feet anticipated by analysts. The five-year average draw is 176 billion cubic feet, and during the same period last year the draw was 133 billion cubic feet.

Natural gas futures for February delivery traded down just about 2% in advance of the EIA’s report, at around $2.90 per million BTUs, and fell more than five cents immediately following the report. Natural gas futures have tumbled from a high of around $3.35 per million BTUs since last week. The 52-week low for natural gas futures is $2.78.

The weather forecast for the rest of this week and into next week calls for more winter-like temperatures across most of the country, with some colder air at times pushing into the southeastern United States. Temperatures west of the Rockies are expected to be warmer than normal. All this adds up to more moderate demand for natural gas this week, roughly the same as demand was a week ago.

Stockpiles are about 8.2% above their levels of a year ago and about 5.5% below the five-year average. The relatively milder weather so far in the heating season has curtailed stockpile drawdowns, compared with last year’s much colder weather.

The EIA reported that U.S. working stocks of natural gas totaled 2.64 trillion cubic feet, about 153 billion cubic feet below the five-year average of 2.79 trillion cubic feet and 199 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.44 trillion cubic feet for the same period a year ago.

EIA projects that U.S. total natural gas consumption will increase to an average of 73.8 Bcf/d in 2015 and 74.8 Bcf/d in 2016, compared with an estimated 73.6 Bcf/d in 2014. Growth is largely driven by the industrial and electric power sectors, while residential and commercial consumption is projected to decline in 2015, then remain flat in 2016. Natural gas consumption in the power sector is expected to average 23.0 Bcf/d in 2015, a 3.2% increase compared with 2014, and it is expected to grow by 1.8% to 23.4 Bcf/d in 2016. Industrial sector consumption increases by 4.5% and 2.1% in 2015 and 2016, respectively, as new industrial projects come online, particularly in the fertilizer and chemicals sectors.

Are you looking for fast and fair Heating Repair? Aaron’s Mechanical Services wants you to stay comfortable all year round.  Most important we want you to spend the least amount of money possible while you stay comfortable. If your Heating system or HVAC unit needs service or replacement please think of us and call at 623-388-4436 and we will come to you and solve your Heating System service needs.

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Aaron’s Mechanical Service
623-388-4436

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