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Encana Corporation Message Board

  • bluehorseshoe57 bluehorseshoe57 Oct 27, 2005 2:21 PM Flag

    Curious

    that with over 55% of NG production shut-in in the GOM, government continues to report blockbuster storage numbers, even in the middle of the first hard cold snap. Do we ever draw down the stored NG?

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    • Expect inventory additions to begin in full next week. Keep in mind that the shut in gas is about 10% of total US production, so there is plenty of gas available, if you are willing to pay for it. The fact that the utilities are buying 77bcf isn't for charity work. In winter, inventories provide only a small portion (I've seen estimates of 20%) of total heating gas, assuming production remains off line the majority of the winter, there will be an excess draw covering the (production short fall of production from Nov-March) and that is the big bull case for gas right now.
      Also, note that there are a ton of feedstock plants located in the gulf that are offline right now. Those aren't contributing to demand, but their customers are clammoring for feedstocks (at almost any price).

    • can't cov on u're stocks- morgan- curios- hard to beleive - bills r up 50%- and we have this storage-

 
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