OKLAHOMA CITY, July 9, 2002 — Economists at C. H. Guernsey & Company estimate the storage levels through most of July will stay well ahead of the five-year average according to a study of natural gas injection and withdrawals conducted by Guernsey.
The study, based on a Guernsey model, predicts stored gas will reach 2,539 billion cubic feet (Bcf) through the week ending July 26. This maintains the gas-in-storage level 16 percent above the five-year average of 2,178 Bcf. Many analysts set 3,000 Bcf as a target for gas storage levels at November 1, prior to the winter heating season.
The Guernsey study shows the net injection rate has kept pace with the historical average since early April and should continue through July.
“Although there has been a decline in production during the injection season because of lower prices this year, the decline has been effectively offset by demand-side factors, such as the weather and economic activity,” Dr. Donald Murry, a Guernsey economist, said.
Dr. Murry said the Guernsey economists estimate the net injection of gas into storage last week is in the range of 78-81 (Bcf).
Guernsey economists have analyzed the weather predictions through much of July for key summer gas-consuming regions as part of the study. They found the expectation of increased gas consumption from warmer than normal predictions in such key locations as Chicago and Atlanta should be offset by lower than normal consumption at other key locations like Philadelphia and Houston.
More information about natural gas storage and its affects on the nation’s economy can be accessed at www.chgeconomics.com.
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; Dallas; Colorado Springs, Colo.; Honolulu; Orlando, Fla.; Tulsa, Okla.; Rock Island, Ill.; and Tallahassee, Fla.