Blistering heat through much of the summer and limited supply flowing west from the Permian Basin kept storage injections in the Pacific region in check, helping to dramatically dwindle a once-massive surplus of natural gas.
Peak temperatures in the 90s and above permeated California this summer, while wind generation demand proved inconsistent, driving strong demand for natural gas to power air conditioners. The Energy Information Administration (EIA) said Thursday that utilities in the Pacific injected a paltry 1 Bcf into storage for the week ended Aug. 16. It followed a 2 Bcf withdrawal the previous week.
The Pacific surplus relative to the five-year average narrowed from above 40% in March to 16% at the end of July. As of mid-August, it was down to 9.9%, according to EIA. The national surfeit also hovered around 40% in March and has steadily shrunk, though it stood at about 13% over the past two EIA report periods.
