Yesterday’s report showed a 112 Bcf build in storage. This is towards the upward range of the rolling 5 year average. Going into the winter heating season this points to adequate supplies. The shale gas production does not seem to cause the storage to grow beyond the average. I wonder why this could happen? Will the storage capacity increase to accommodate the shale gas production? A few years ago the gas storage was greater than the stated storage capacity.
Along this line there was a news article reporting that Conoco had bought Marathon’s portion of an Alaskan LNG export project. This is the only facility with an export license at this time. This could make the US an energy exporter for the first time in many years. The LNG would presumably come from Alaskan fields and not directly affect the lower US.
