Floodgates

While events in energy markets in 2009 did not resemble the roller-coaster ride of 2008, technological innovations that opened the floodgates for gas production out of shale plays changed the paradigm for the gas market, according to a state of the markets report issued Thursday by FERC’s Division of Energy Market Oversight.

While events in energy markets in 2009 did not resemble the roller-coaster ride of 2008, technological innovations that opened the floodgates for gas production out of shale plays changed the paradigm for the gas market, according to a state of the markets report issued Thursday by FERC’s Division of Energy Market Oversight.

Despite the holiday, storage operators finally opened the floodgates during the first week of the year in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage for the week ending Jan. 4, the first withdrawal this season that has exceeded the previous year’s pace.

Despite the holiday, storage operators finally opened the floodgates last week in response to extremely cold weather, particularly in the Northeast and Southeast. The American Gas Association (AGA) reported a 190 Bcf withdrawal from storage, the first withdrawal this season that has exceeded the previous year’s pace. The number far exceeded last year’s 167 Bcf weekly withdrawal and was much bigger than the five-year average for the week of 137 Bcf. But it knocked only a smidgen (23 Bcf) off the year-on-year storage surplus.