Winter storm looks to bring freeze-offs, lower supply to Midwest as demand spikes

摘要

Frigid temperatures settling across the western half of the US this week have the potential to prompt production freeze-offs, particularly in the Bakken Shale, and lower pipeline inflows at a time when large markets will be experiencing demand spikes. Bakken supply is expected to shrink at a time when areas around Chicago and Detroit will most need the support, increasing the region’s reliance on natural gas in storage. US Upper Midwest demand is expected to jump 2.6 Bcf/d day over day to 22.5 Bcf/d on Jan. 27 before rising again to 23.8 Bcf/d on Jan. 28 as temperatures dip 11 degrees Fahrenheit below the five-year average to roughly 16 degrees.