WASHINGTON — Natural gas inventories have rebounded and are above average for this time of year, easing worries about possible tight supplies and wintertime price spikes, Energy Secretary Spencer Abraham said Monday.
Moderate weather has eased demand and allowed natural gas inventories to exceed levels of this time last year, Abraham said in remarks at the National Press Club.
The Energy Information Administration said 3.16 trillion cubic feet of natural gas was in storage at the end of October, a little more than 1 percent above the five-year average.
Last May, storage levels fell to the lowest ever recorded for the start of summer, nearly 40 percent below the five-year average. That prompted misgivings about natural gas supplies for this winter’s heating season.
Summer weather turned out to be cooler than expected, however, and the fall has been generally warmer, which has allowed the industry to build up supplies.
Residential consumers still can expect to pay more for heating this winter, compared with last year. Much of the gas put in storage cost between $5 and $6 per 1,000 cubic feet on the wholesale spot market.
The spot price was $4.49 per 1,000 cubic feet last Friday at the Henry Hub trading center in Louisiana.
On other matters, Abraham said that Saturday’s terror attack in Saudi Arabia, a major source oil for the United States, demonstrates the need for America to diversify its energy sources.
While the deadly attack on a housing compound in Riyadh had no effect on the Saudis’ oil operations, it demonstrated growing unrest within Saudi Arabia, which has the world’s largest oil reserves.
Thus, Abraham said, Congress should finish work quickly on a broad energy bill.
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