Guernsey Shows Increase in Natural Gas Storage Levels

04.15.2002

OKLAHOMA CITY -- C. H. Guernsey & Company, a national engineering, architectural and consulting firm, estimates the natural gas net injection into storage of 15 to 27 billion cubic feet (bcf) for the week ending April 12.

This makes the first week of net injections following a mild 2001-02 heating season. The estimation is based on GUERNSEY's econometric model of gas storage injections and withdrawals.

The GUERNSEY prediction of the storage level at the beginning of the injection season puts the level of gas in storage 104 percent above the storage level one year prior.

Dr. Donald Murry, Vice President and economist, points out the five-year average net injection is less than 2,000 bcf during the seven-month injection period.

''The current level of natural gas in storage is like getting a six-week head-start on the injection season. If we do not have abnormally warm weather in the key areas using gas for the air conditioning load, the market fundamentals of this supply in storage will help hold down prices during the summer.'' Murry said.

Purchasers, sellers and traders of natural gas watch the storage levels carefully because the level of gas in storage is an indicator of the levels of production relative to overall needs and can move the price for natural gas either upward or downward.

Natural gas is typically traded using the American Gas Association (AGA) number. The AGA announces results of its survey on Wednesday for the injections and withdrawals from natural gas storage facilities.

C. H. Guernsey & Company offers high quality engineering, architectural and consulting services to clients in the United States and abroad. The firm has provided innovative solutions for over 73 years. GUERNSEY has its headquarters in Oklahoma City with offices in Amarillo, Texas; Atlanta, Ga.; Dallas, Texas; Colorado Springs, Colo.; Honolulu, Hawaii; Orlando, Fla; Tulsa, Okla.; Rock Island, Ill.; and Tallahassee, Fla.

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