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Earth Energy Advisors Monthly Energy Report

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1 Earth Energy Advisors Monthly Energy Report
Working gas in underground storage, Lower 48 states Working gas in underground storage, Lower 48 states Summary text CSV JSN Historical Comparisons Stocks billion cubic feet (Bcf) Year ago (07/28/16) 5-year average ( ) Region 07/28/17 07/21/17 net change implied flow Bcf % change East 651 626 25 727 -10.5 678 -4.0 Midwest 754 744 10 824 -8.5 724 4.1 Mountain 200 197 3 213 -6.1 175 14.3 Pacific 293 294 -1 315 -7.0 327 -10.4 South Central 1,112 1,129 -17 1,211 -8.2 1,019 9.1    Salt 306 318 -12 322 -5.0 266 15.0    Nonsalt 806 812 -6 888 -9.2 753 7.0 Total 3,010 2,990 20 3,289 2,923 3.0 Source: EIA - for week ending July 28, 2017 publication “Today in Energy”

2 Earth Energy Advisors Monthly Energy Report-
Summary Working gas in storage was 3,010 Bcf as of Friday, July 28, 2017, according to EIA estimates. This represents a net increase of 20 Bcf from the previous week. Stocks were 279 Bcf less than last year at this time and 87 Bcf above the five-year average of 2,923 Bcf. At 3,010 Bcf, total working gas is within the five-year historical range. Note: The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2012 through The and year-ago weekly periods Source: EIA July 28th publication “Today in Energy

3 Earth Energy Advisors Monthly Energy Report
Many states have adopted policies to encourage energy efficiency As of July 2017, thirty states and the District of Columbia have adopted energy efficiency policies—either mandated requirements, voluntary goals, or pilot programs—designed to lower the growth of electricity consumption by using electricity more efficiently. Seven of these states have either created new or updated existing energy efficiency standards within the past year Source: EIA June 18th publication “Today in Energy

4 Earth Energy Advisors Monthly Energy Report
The Basics of Underground Natural Gas Storage Release Date: November 16, 2015 Natural gas–a colorless, odorless, gaseous hydrocarbon–may be stored in a number of different ways. It is most commonly held in inventory underground under pressure in three types of facilities. These underground facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations. Natural gas is also stored in liquid or gaseous form in above–ground tanks. Each storage type has its own physical characteristics (porosity, permeability, retention capability) and economics (site preparation and maintenance costs, deliverability rates, and cycling capability), which govern its suitability for particular applications. Two important characteristics of an underground storage reservoir are its capacity to hold natural gas for future use and the rate at which gas inventory can be withdrawn–called its its deliverability rate (see Storage Measures, below, for definitions). Most existing natural gas storage in the United States is in depleted natural gas or oil fields that are close to consumption centers. Conversion of a field from production to storage duty takes advantage of existing wells, gathering systems, and pipeline connections. Depleted oil and natural gas reservoirs are the most commonly used underground storage sites because of their wide availability. In some areas, most notably the Midwestern United States, natural aquifers have been converted to natural gas storage reservoirs. An aquifer is suitable for gas storage if the water-bearing sedimentary rock formation is overlaid with an impermeable cap rock. Although the geology of aquifers is similar to depleted production fields, their use for natural gas storage usually requires more base (cushion) gas and allows less flexibility in injecting and withdrawing. Deliverability rates may be enhanced by the presence of an active water drive, which supports the reservoir pressure through the injection and production cycles. Salt caverns provide very high withdrawal and injection rates relative to their working gas capacity. Base gas requirements are relatively low. Most salt cavern storage facilities have been developed in salt dome formations located in the Gulf Coast states. Salt caverns have also been made (by a process called leaching) in bedded salt formations in Northeastern, Midwestern, and Southwestern states. Cavern construction is more costly than depleted field conversions when measured on the basis of dollars per thousand cubic feet of working gas capacity, but the ability to perform several withdrawal and injection cycles each year reduces the per-unit cost of each thousand cubic feet of gas injected and withdrawn. Figure 1 is a stylized representation of the various types of underground storage facilities. Figure 2 shows the U.S. natural gas storage regions

5 Earth Energy Advisors Monthly Energy Report


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