Unveiling the Natural Gas Storage Indicator
What Is the Natural Gas Storage Indicator?
The Natural Gas Storage Indicator is the U.S. Energy Information Administration’s (EIA) assessment of the amount of working natural gas held in underground storage across national and regional levels. This crucial report provides weekly estimates reflecting the natural gas volumes in the Lower 48 states and five key regions. Weekly variations in these inventories primarily denote net withdrawals or injections. The updated report is made available every Thursday at 10:30 am EST, with unusual changes potentially leading to immediate shifts in natural gas prices.
Understanding the Natural Gas Storage Indicator
Discover the working gas, defined as the gas volume in a reservoir that surpasses a specified base level and is ready for sale to market. The EIA report delivers a comprehensive breakdown of gas inventories for both the current and previous weeks, highlighting the changes on a national and regional scale (East, West, and Producing regions). Historical comparisons pertain to inventories from a year ago and the five-year average.
This systemic approach leverages weekly survey data from selected operators of underground storage facilities, enabling predictions at regional and national levels.
Historical Context
Initially, weekly estimates of working gas storage were available through the American Gas Association (AGA) in 1994. However, in 2001, the AGA ceased its survey due to resource constraints. Subsequently, the EIA filled the void in 2002, releasing its first underground U.S. natural gas storage estimates for the week ending May 3, 2002.
Goals of the Indicator
The primary aim of the EIA’s storage data program is to provide timely, weekly estimates of working gas levels in underground storage across the United States and five distinct regions. These reservoirs might consist of depleted oil and gas fields, aquifers, or salt caverns, categorized as either base gas or working gas.
The Significance for Natural Gas Traders
For natural gas traders, the Natural Gas Storage Indicator is indispensable. Upon the report’s publication, traders analyze the derived net changes in inventory levels from the previous week, often making trading decisions that lead to price adjustments ranging from 3 cents to 5 cents per million British thermal units (MMBtu) each week.
Related Terms: Natural Gas Prices, Market Indicators, Gas Inventory, EIA Data.
