Chesapeake Energy: This Bad Weather Is Actually Bad For Business
Demand is at an all-time high in the United States thanks to prolonged cold weather (and therefore high power use) in much of the country. Power use is up 5.7 percent on the year for the first week of February, most of it from residential and commercial use.
However, snow and ice can be hell for production facilities. As demand has increased, output has decreased. In the East, where temperatures have been far below average, working gas levels have fallen below the five-year range. Even in a scenario in which withdrawals from reserves slow down, working gas levels in the region aren’t expected to return to the average range until the end of March.
The EIA rports that a 262-billion-cubic-foot withdrawal of natural gas from storage placed total storage levels in the lower 48 states below 2 billion cubic feet. This heating season (November 1 through March 31) has already seen record-high cumulative withdrawals in each region of the lower 48.