I stole the following analysis from an AOL message board
AOL Message Board
and thought some readers might be interested in "MCarr's" number crunching.
Quote:
"A visit to the "Commodities Corner" column in Barron's 11/28/05 indicated that LNG imports for the 3rd quarter were 23% below the year ago number. The reasons include that LNG export facilities lack the necessary capacity and some other countries have upped their imports. There are 9 large export facilities scheduled to come on line by the end of 2006 so by this time next year there should be a lot more available.
The latest information that I could find quickly at the DOE site was updated through Aug 2005. For Jul and Aug 2004 the LNG imports were 75 and 59.5 bcfd. For Jul and Aug 2005 the LNG imports were 53.1 and 43.6 bcf so the drop has been significant. On a daily basis we can estimate that the drop was
(75 + 59.5 - 53.1 -43.6) / 62 = 37.8 / 62 = 0.61 bcfd or about 4.2 bcfw.
If we extend this into November then we would be missing another 4.2 bcf during the week ended 11/18/05 which just adds a little more to the perplexing question of where all the gas is coming from or where it is not being used. .
Why stop with LNG estimates? I looked at the same data for pipeline imports published by the DOE. For the months Jan through May of this year pipeline imports were greater than last year. but in June and August they were substantially less. For example in August they were almost 44 bcf lower (1.42 bcfd). The month with the biggest increase over last year was March when about 35 bcf more was imported. Unfortunately we don't have any data for November but we can make a worst case estimate. In November of last year we imported 327.5 bcf. Looking at the data since Jan 2002 the highest import month was about 350 bcf. Assuming that this is the maximum that can be imported then the largest amount by which imports in November could have exceeded last years imports would be about 22.5 bcf (0.75 bcfd/5.25/wk). Previous reports from Canada do not paint a picture favorable to increased exports especially when you consider that they require more gas to increase production of oil sands.
My conclusion is that it is not likely then that imports could account for a significant portion of the 80+ bcf that was identified in previous posts. In fact when the data is all in, it may turn out that imports join the GOM in providing less gas vs last year.
U.S. Natural Gas Imports by Country
Info from previous post follows:
===========================================
The MMS data for the week ended 11/19/04 indicates that shut in production in the GOM was approximately 7 X .67847 = 4.75 bcf. This compares to the approximate 26 bcf shut in for the week ended 11/18/05. You can adjust the calculations in the previous post to reflect this info.
Production in the GOM (when shut ins are restored) would be 10 bcfd(11/18/05) and 12.3 bcfd(1/18/04) according to the reports
Therefore, new production minus depletion in the GOM is a negative 2.3 bcfd or 16.1 bcf/week if the MMS reports are accurate. If there were no shut in production in either year, production contributed from the GOM would be 16.1 bcf/week less this year than last.
The difference in production from last year including the shut ins would be:
(12.3 bcfd - .67847 bcfd) * 7 = 81.35 bcf {11/19/04}
(10 bcf - 3.617 bcfd) * 7 = 44.681 bcf {11/18/05}
81.35 bcf/week - 44.681 bcfw = 36.67 bcf/week
Production from the GOM for the week ended 11/18/05 was therefore 36.67 bcf less than last year. New land based production minus depletion would have to be pretty large to compensate for this GOM decline.Also recall that the draw down for 11/19/04 was 49 bcf vs 8 bcf this year even though it was considerable colder this year than last.
Logic would dictate that the draw down this year would have been greater than last even if GOM production was equal in the two years so we are talking about (36.67 + 41 + Factor for colder weather = > 80 bcf).
If you are inclined to make calculations like I am, let me know if you agree. Links to the two reports as well as the relevant excerpt follow.
11/18/05"
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