Heating demand increased this week as winter weather and cold weather forecasts hit most of the
nation. For the week (Wednesday to Wednesday), the spot
price at the Henry Hub rose 59 cents, or about 5 percent, to $11.73 per million
British thermal units (mmBtu). This Wednesday's price
of $11.73 was $4.94, or 73 percent, above last year's level of $6.79.
Shut-in natural gas production dropped to 3 billion
cubic feet as of Wednesday, November 30, from its level on the previous Wednesday of 3.2 billion cubic feet.
The amount of natural gas in storage in the East Region decreased 2.1% for the week ending November
25 to 1,896 billion cubic feet which was 82 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