OMA Energy Committee Richard Ricks NiSource/Columbia Gas of Ohio - - PowerPoint PPT Presentation

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OMA Energy Committee Richard Ricks NiSource/Columbia Gas of Ohio - - PowerPoint PPT Presentation

Nov 26, 2022 484 likes •692 views

Natural Gas Update OMA Energy Committee Richard Ricks NiSource/Columbia Gas of Ohio May 21, 2020 1 2019/2020 Ohio Winter Degree Days: 12 % Warmer 2 NOAA Temperature Outlook: May, June, & July 2020 3 Storage Above the 5 Yr Average

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Natural Gas Update OMA Energy Committee Richard Ricks NiSource/Columbia Gas of Ohio May 21, 2020

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2019/2020 Ohio Winter Degree Days: 12 % Warmer

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NOAA Temperature Outlook: May, June, & July 2020

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Working gas in storage was 2,422 BCF as of Friday, May 8, 2020, according to EIA estimates. This represents a net increase of 103 BCF from the previous week. Stocks were 799 BCF higher than last year at this time and 413 BCF above the five-year average of 2,009 BCF. At 2,422 BCF, total working gas is within the five-year historical range. . .

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Storage – Above the 5 Yr Average

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NYMEX Prompt Month Settlement – 5 Years

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NYMEX Prompt Month Settlement History

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NYMEX Futures Settlement: 05/12/2020 – $3 back on chart

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NYMEX Term Pricing: 5-18-2020 – Little Higher

TERM PRICE 3-6-20 PRICE 5-18-20 3 month $1.76 $1.80 (+$0.04) 6 month $1.84 $1.98 (+$0.14) 12 month $2.07 $2.37 (+$0.30) 18 month $2.10 $2.44 (+$0.34)

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Select Hub Pricing – March 6, 2020 – Little Lower

HUB LOCATION 3-6-20 5-18-20

Henry Hub $1.74 $1.60 (-$0.14) Houston Ship Channel $1.65 $1.61 (-$0.04) TCO Pool $1.50 $1.37 (-$0.13) Dominion South Point $1.40 $1.17 (-$0.23) TETCO M-2 $1.41 $1.13 (-$0.28) TGP Zone 4 $1.37 $1.03 (-$0.34) Dominion, TCO, TETCO, & TGP pricing is Marcellus/Utica Area.

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EIA predicts Natural Gas Production Slow Down in 2020

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EIA predicts Natural Gas Consumption Slow Down in 2020

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8.0 2.6

  • 3.3
  • 2.5
  • 8
  • 6
  • 4
  • 2

2 4 6 8 10 2018 2019 2020 2021 Components of annual change billion cubic feet per day

net change industrial electric power residential and commercial

  • ther

forecast

10 20 30 40 50 60 70 80 90 100 110 120 2018 2019 2020 2021

monthly history monthly forecast annual average

U.S. natural gas consumption billion cubic feet per day

Source: Short-Term Energy Outlook, May 2020

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US Natural Gas Supply, Demand, & Export - Tempering

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Historical US Total Energy Production & Consumption – Gas & Renewables Growing

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Recent Unusual Pricing: Negative Oil & Low LNG Prices

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Oil & Gas Rig Count – Low – Price is too low

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Oil & Gas Rig Count – Lots Lower – By the #s

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Rigs

Tue, May 05, 2020

Change from last week last year Oil rigs 292

  • 10.2%
  • 63.7%

Natural gas rigs 80

  • 1.2%
  • 56.3%

Note: Excludes any miscellaneous rigs Rig numbers by type Tue, May 05, 2020 Change from last week last year Vertical 9

  • 18.2%
  • 80.0%

Horizontal 338

  • 9.6%
  • 61.2%

Directional 27 17.4%

  • 62.0%
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Recent Developments - Energy

  • Continued pain in the Oil & Gas field; Pricing continues low
  • Domestic Oil & Gas E&P entities continue to materially cut capital budgets
  • COVID 19 materially reduced energy demand in addition to a warm 19/20

winter

  • Oklahoma joins Arizona & Tennessee in preventing local governments

from prohibiting the use of natural gas in buildings

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Thank You

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