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Blue Lacy Advisors, LLC - November 23, 2022 Natural Gas Market Commentary

Minneapolis, MN | December 8, 2022 | By: Steve Sinos, Blue Lacy Advisors, LLC


The final stats for September gas and power usage are in for the US, and it looks like natural gas continued its trend of capturing market share from coal. Net generation across the US was up just 0.9%, but natural gas consumption grew by >13% versus a drop in coal consumption of 16.2%. That translates into an additional ~134 Bcf of natural gas consumption, making the 74 Bcf reduction in the 5-year storage deficit even more impressive and helping to confirm the weakness in prices during September and leading into October.

Weather forecasts have consistently called for this trend to abate “next week” and are doing so again. Early December cold is expected to set in, driving demand up and possibly accelerating the pace of storage withdrawals. This would coincide with Freeport’s advertised initial start, though the traders I talk to remain skeptical of the pace at which they can get that plant running.

*This summary is based off November 23, 2022

A free excerpt, such as this one, will be published on a delay periodically. This is an excerpt from Blue Lacy Advisors, LLC's (“Blue Lacy”) weekly commentary for clients, which is based on a collection of models, research/analytical subscriptions, and bespoke work. Each week Blue Lacy explores how market drivers included in these analyses might affect or be used in clients' planning, budgeting, and execution of strategy. Call Blue Lacy to make an appointment today!


Meet the Author!

Phone: +1-832-413-3124

Steve has spent his career in strategy, risk, trading, and investment. He works with investors to source investments in opportunistic or high growth sectors, with particular interest in early-stage companies solving clearly defined problems.

He is currently a Managing Partner with Blue Lacy Advisors LLC, giving management teams and investors confidence in their decision making by supporting strategic planning and execution, risk management, commodity trading, and market analysis.

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