On May 10, the Henry Hub natural gas spot price
had fallen six cents per million British
thermal units (mmBtu), or less than one percent, to $6.50 since last Wednesday. This
Wednesday's price of $6.50 was 13 cents lower than the price of $6.63 per mmBtu on the second Wednesday of May 2005.
gas production in the Gulf of Mexico was 1.295 billion cubic feet per day as of Wednesday,
May 3, down from its level on April 19 of 1.334 billion cubic feet per day.
The amount of natural gas in storage in the East Region increased 5.1
percent to 1,008 billion cubic feet for the week ending May 5, which was 400 billion cubic feet
above the five-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