Temperatures were warmer compared to last week,
which reduced space-heating demand. For the week (Wednesday to Wednesday), the
spot price at the Henry Hub decreased
$1.25, or almost 9 percent, to $13.55 per million British
thermal units (mmBtu).
natural gas production dropped to 2
billion cubic feet per day as of Monday, December 19, from its level on the previous Monday
of 2.3 billion cubic feet per day.
The amount of natural gas in storage in the East Region
decreased 5.7 percent to 1,645 billion cubic feet for the week ending December 16, which
was 22 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