Apr 28, 2024

No Course Correction, Yet

Gas storage has continued on its trajectory toward full operating storage this injection season (chart 801). Recent high storage years have had to make a turn towards a lower injection trajectory in order to avoid hitting full operating storage (chart 801High).

So far, 2024 has yet to show any signs of injections moving to below average (chart 411WinSpg24). This year is running a similar trajectory to that of 2023. If that similarity continues, U.S. gas storage could approach 4.3 Tcf in 2024!

Something will have to change to avoid the full storage risk. Perhaps this summer will be hot enough. However, that may or may not play out. Summer gas prices that are running in the $2.00 to $2.50 range seems unlikely to create that shift. Gas producers appear to think that the fix is already in. Perhaps it is, but that is not yet apparent in the data.