Natural gas slides after jump in supplies

Natural gas slides after jump in supplies                                 (                                     NGU13                                 )                                by Victor Reklaitis

NEW YORK (MarketWatch) - U.S. natural-gas supplies rose significantly more than expected for the week ended Aug. 2, according to data from the U.S. Energy Information Administration issued Thursday. Supplies grew by 96 billion cubic feet, while analysts surveyed by Platts had expected a net addition between 74 billion cubic feet and 78 billion cubic feet. Platts had noted the number would be much-higher-than average amid mild weather across much of the U.S. that reduced natural-gas demand for power generation. Natural gas for September delivery     (NGU13)   was down 4 cents, or 1.3%, to $3.20 per million British thermal units. The contract had traded around $3.24 before the EIA data

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Permalink Reply by dbob on August 11, 2013 at 4:54

they also reclassified some base gas to working gas, which increased the total amount of gas available.  part of the build numer us that "new" gas

Permalink Reply by adubu on August 11, 2013 at 5:32
Dbob-- what is "working gas" or base gas -- where or what was is prior classified?
Permalink Reply by dbob on August 11, 2013 at 5:48

there is a certain amount of gas in the storage system used to keep the formation pressure up.  This is called base gas, and is not included in the storage report.  Working gas is the gas that is reported on a week to week basis.  As more is known about particular storage fields, they can reduce the amount of base gas and have more working gas - 

http://ir.eia.gov/ngs/ngs.html

Permalink Reply by adubu on August 11, 2013 at 7:10

sound like so called " whore house accounting" Why change calculation for amount gas already there? Reason? I am sure what ever reason it has to do with money some how. I wonder if the people who shorted futures had something to do with it? Has this amount gas to maintain pressure always been part of storage Volume?

Permalink Reply by dbob on August 11, 2013 at 7:18

I'm not sure how often the reclassification happens - it may be related to FERC approvals.  Base gas is not part of the storage volume reported weekly - it only gets reported after its classified as working gas.  

Permalink Reply by adubu on August 11, 2013 at 11:08
Over time is some of base gas lost so added injection to maintain base amount required? Look like it be swap even in total storage

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