Weekly Natural Gas EIA Storage Report for May 7th

Weekly Natural Gas EIA Storage Report for May 7th

Here are the latest details from the U.S. Energy Information Administration regarding natural gas inventories.

The 2021 decline in natural gas is the first year-over-year decline in the gas generation since 2017 due to higher prices and increased competition from renewable sources. Compared with 2020, the total electricity generation increased by 6.6%, primarily attributable to colder winter weather.

Coal-fired generation has increased by nearly 40% in the first four months of 2021, compared with the same period of 2020, making up for 23% of the total generation.

As a response to lower production & higher winter heating demand during the 2020 seasons, prices have risen considerably over the past year compared with the prior heating season. The natural gas-fired generation has also experienced increased competition from renewable sources, mainly because of the recent record-breaking additions of wind and solar plants.

EIA expects declines in the natural gas-fired generation to continue throughout 2022, with a 6.8% decline in 2021 and another 2.3% in 2022.

Sources: eia.gov

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