Oil falls as production hits 22-year high

Power House!

Natural Gas (NYMEX:NGU13) report today! Reuters) - The U.S. Energy Information administration on Wednesday said it had upwardly revised working natural gas storage capacity by about 2% in the Lower 48 U.S. states between November 2011 and November 2012. Working gas is the total volume in an underground natural gas facility available to be withdrawn and does not include base gas, which is the amount needed to maintain cavern integrity.

As of November 2012, EIA said demonstrated maximum working gas volume, a measure of the highest level of working gas reported at each facility over the previous five years, increased by 1.8% to 4,265 billion cubic feet. Working gas design capacity, an estimate of a facility's working capacity as reported by the operator, rose by 2% to 4,575 bcf, the agency said. Natural gas storage provides pipelines, local distribution companies, producers and pipeline shippers with an inventory management tool, seasonal supply backup and access to natural gas needed to avoid imbalances on a pipeline system.

EIA said the largest year-over-year increases occurred primarily in salt dome facilities in the Producing Region. Most were expansions at existing sites, particularly in Mississippi and Louisiana. Four new facilities went into operation during the year, with three located in the West Region and one in the Producing Region. Planned storage projects could add another 71 bcf to total design capacity in 2013. These are facilities that are reported to be currently under construction and include 34 bcf in Producing salt dome facilities and 37 bcf in the West. There are no reports of capacity additions in the East Region in 2013, partly due to increasing volumes available from the Marcellus shale formation in Appalachia.

Utilities typically stockpile natural gas from April through October, then withdraw stored supplies from November through March to help meet peak winter heating demand. Gas stockpiles peaked last year at 3,929 bcf in early November, making it the fourth straight year that gas inventories headed into winter at an all-time high.

First a well blow out now another rail issue. NBC is reporting a train derailment shut down the Port of Tampa in Florida on Thursday morning after several cars leaked ethanol. Fifteen train cars derailed and three spilled ethanol, Tampa Fire Rescue officials told NBC News affiliate WFLA. Hazmat crews responded to the derailment around 1 a.m. local time, which caused no reported injuries. The cleanup may take longer than 24 hours, WFLA reported.

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Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.


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