Post attack: there are two stories percolating under the surface -- now that WTI is "sort of" back where it started and still way, way below what some thought would happen. The two stories:
- the numbers don't add up; all this hysteria over 5% of the world's total production?
- US shale is is the swing producer
WTI: surges yesterday. Barely reaches $60, and now this a.m. dropping back. See above.
Back to the Bakken
Only one well coming off confidential list today - Tuesday, September 17, 2019: 44 for the month; 176 for the quarter:
35523, conf, Hess, EN-Davenport-156-94-1003H-4,
RBN Energy: Low Alerta gas storage is not spooking the AECO winter market, yet.
Alberta natural gas storage, one of the largest regional storage hubs in North America, is experiencing one of its slowest cumulative storage injection rates in years and could be headed to a 13-year low for storage levels by the end of the current injection season. That may seem ominous for the chilly Alberta and Canadian winter heating season, not to mention gas exports to the U.S. So far, though, winter gas forward prices for the Western Canadian gas price benchmark of AECO have registered a relatively modest market response, staying in line with last winter’s average spot price. Today, we take a closer look at the market’s apparent lack of concern over low Alberta gas storage.
Canadian natural gas storage is not often a topic in the RBN blogosphere, but with Alberta — the province with more gas storage capacity than any other — showing remarkably low storage levels for late summer, and the U.S. still a steady gas taker of Western Canadian gas during the winter, the storage deficit there is likely to factor into how the North American gas market balances this winter. Alberta’s gas storage capacity is estimated at 499 Bcf by the Alberta Energy Regulator (AER) and easily dwarfs that of any other province in Canada. The next-closest competitor would be Ontario at 279 Bcf of storage capacity. Among the U.S. states, Alberta’s storage capacity would rank third, behind only Michigan (686 Bcf) and Texas (549 Bcf), based on capacity data compiled by the U.S. Energy Information Administration (EIA). On that basis, it’s safe to say that Alberta is a major player in the North American gas storage business.