For the week (Wednesday to Wednesday), the spot
price at the Henry Hub fell 24 cents, or about 2 percent, to $13.52 per million
British thermal units (mmBtu). The Henry Hub price
was $7.40, or 121 percent, above last year's level of $6.12. This week had unusually large price
swings. There was a large decrease on Friday (October 14) due to moderate temperatures, the
predicted moderate temperatures for the weekend, and a large number of nearly-full storage facilities.
News of Tropical Storm Wilma was behind the sharp increase in price on Monday (October 17).
The amount of natural gas in storage in the East Region increased 2.5% for the week ending October 14
to 1,819 billion cubic feet which was 19 billion cubic feet above the 5-year average. Nebraska is
a part of the East Region (see
map) which is a major natural gas consumer, particularly in the
residential and commercial sectors. The
industrial sector, which includes agriculture, is also a major consumer in this
state. Most of the gas is supplied from the Producing
Region with a fair amount imported from Canada. The Henry Hub in southern Louisiana is a major
market center with interconnections for many of the pipelines that transport U.S.-produced gas to the East
Region. Furthermore, the Henry Hub is the preferred reference point for prices for most of the
domestic gas destined for the East. Therefore, market conditions and developments in the East Region
and price movements and trends at the Henry Hub are usually highly correlated.
Notes: An archive is
available. Divide the price by ten (10) to obtain the price per hundred cubic feet
(ccf) or the approximate price per
Natural Gas Spot Prices at the Henry Hub 2004 and 2005