US offshore oil, gas production rebound begins following storms, now Beta looms

摘要

Texas offshore natural gas production has failed to join in the wider US Gulf of Mexico output rebound following hurricanes Laura and Sally and now Tropical Storm Beta is slowly churning its way toward the state in what has become one of the most active hurricane seasons in US history. After selling off to just $1.57/MMBtu on Sept. 18, spot Henry Hub prices were expected to see more upside this week as gas-fired power generation rebounded in the aftermath of Sally and TS Beta suppressed output. However, the cash price for Henry Hub plummeted 26.5 cents on Sept. 21 to $1.32/MMBtu, its lowest level in nearly 22 years. Sally made landfall early on Sept. 16, reducing US Southeast generation sector demand for gas to an average of 8.8 Bcf/d, according to S&P Global Platts Analytics. Power burn this week is forecast to climb to an average of 9.6 Bcf/d as service for most customers will be restored, and population-weighted average temperatures heat up to a high of 78 degrees Fahrenheit for the entire region by the end of the week.