What is the 'Natural Gas Storage Indicator - EIA Report'

The Natural Gas Storage Indicator is the U.S. Energy Information Administration's (EIA) estimate of working natural gas volumes held in underground storage facilities at the national and regional levels. The EIA provides weekly estimates of working gas volumes held in underground storage facilities at the Lower 48 states and five regional levels. Changes in these gas inventories on a weekly basis primarily reflect net withdrawals or injections. The report is generally reported every Thursday at 10:30 am EST. Unexpected changes such as above-average withdrawals or injections can have an immediate impact on natural gas prices.

BREAKING DOWN 'Natural Gas Storage Indicator - EIA Report'

The Natural Gas Storage Indicator is a measure of working gas, which is the volume of gas in a reservoir that is above a specified base level, and is the amount of gas that is available for sale to the marketplace. The EIA report shows gas inventories for the reporting week and previous week, as well as the net change, on a national basis and for East, West and Producing regions. It also provides inventories for a year ago and the five-year average for historical comparison.

The overall approach relies on weekly survey data from a sample of operators of underground storage facilities. These data are used to prepare regional and national estimates for all underground storage.

History of the Indicator

Weekly estimates of working gas in storage were first provided by the American Gas Association (AGA) in 1994, however by 2001, the AGA decided that it would discontinue its survey due to resource considerations. The EIA stepped in to fill the information gap to the natural gas market and released its first estimates of underground U.S. natural gas storage for the week ending May 3, 2002.

The Indicator Goal

According to the EIA, the goal of the weekly storage data program is to provide weekly estimates of the level of working gas in underground storage for the United States and five regions. The total volume of natural gas in underground storage reservoirs is classified as either base gas or working gas. Underground storage facilities may be reservoirs in depleted oil and gas fields, aquifers, or salt caverns.

The Natural Gas Storage Indicator is a very important data source for natural gas traders. According to the EIA, upon release of the report, the natural gas market reacts to the derived net change in inventory levels from the prior week. This information on the nature of the net changes between weekly inventory data reports is helpful in informing trading decisions that often move natural gas prices 3 cents to 5 cents per million British thermal units (MMBtu) each week upon release.

RELATED TERMS
  1. EIA Natural Gas Report

    The EIA Natural Gas Report is a report written by the Energy ...
  2. Natural Gas ETF

    A natural gas ETF is an exchange-traded fund designed as a commodity ...
  3. Natural Gas Equivalent

    The amount of energy used by the burning of natural gas versus ...
  4. Oil Price to Natural Gas Ratio

    The oil price to natural gas ratio compares prices of crude oil ...
  5. Liquefied Natural Gas (LNG)

    Liquefied natural gas (LNG) consists mostly of methane and is ...
  6. Underground Economy

    The underground economy describes illegal economic transactions ...
Related Articles
  1. Investing

    Winners and Losers of Low Natural Gas Prices

    Chemical and fertilizer manufacturers benefit from a low price for natural gas, while utilities and natural gas producers are adversely affected by it.
  2. Investing

    The Smartest Strategies For Trading Natural Gas Options

    There are multiple strategies for trading natural gas options, once you have the right data. Here we discuss the basics.
  3. Investing

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  4. Investing

    Do Natural Gas Prices Always Follow Oil Trends?

    Prices for oil and natural gas are highly correlated. But investors should be aware of different factors affecting the prices of these commodities.
  5. Investing

    UNG: United States Natural Gas Fund LP ETF

    Find out more about the United States Natural Gas exchange-traded fund, the characteristics of the ETF and the suitability and recommendations of it.
  6. Investing

    Natural Gas Industry: An Investment Guide

    Investors looking into this industry are faced with a confusing amount of information. We explain the important concepts and terms.
  7. Investing

    1 Big Catalyst for Chesapeake Energy (CHK, RRC)

    For years the natural gas market in the U.S. was based on seasonal needs. A long and cold winter meant that Americans would use more natural gas, sending its price higher. That was a boon for ...
  8. Investing

    Will Natural Gas Perform Like Oil? (UNG, XLE)

    Oil is in a bull market. Will natural gas prices follow or are both headed for a near-term correction?
  9. Investing

    The world's top 10 natural gas companies

    Read about the 10 companies that, combined, produce over 100 billion cubic feet of natural gas – approximately 30% of the world's total production.
  10. Investing

    How Fracking Affects Natural Gas Prices

    Whatever you think of fracking, it has done one thing: kept the price of natural gas from increasing any more than it has.
RELATED FAQS
  1. How does the risk of investing in the oil and gas sector compare to the broader market?

    Learn how the oil and gas sector has risk both with the broader market and the price of oil and gas, and understand how correlation ... Read Answer >>
  2. What percentage of the global economy is comprised of the oil & gas drilling sector?

    Read about a rising industry that already composes as much as one-twentieth of total global economic output: the oil & gas ... Read Answer >>
  3. How does government regulation impact the oil & gas drilling sector?

    Find out how government regulation of the oil and gas sectors is often positive for the large companies, but may be negative ... Read Answer >>
  4. What are average operating expenses for the oil and gas sector?

    Learn about the average operating expenses and average operating expenses margin for the oil and gas sector and how they ... Read Answer >>
  5. What economic indicators do oil and gas investors need to watch?

    Leading indicators for oil and gas investments are centered around the levels of production, consumer demand and inventory ... Read Answer >>
Hot Definitions
  1. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  2. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  3. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  4. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  5. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
  6. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
Trading Center