Natural gas has long been a global commodity,but until recently the U.S.was largely sheltered from this global market.Instead,the U.S.natural gas market was for the most part self-contained,aside from Canadian imports via pipeline and small amounts of liquefied natural gas(LNG)imports.Domestic gas prices were primarily dependent on seasonal demand for heating and cooling.Most of the time,the easiest way to determine natural gas storage levels in the U.S.was to ask,”Hows the weather?”However,since the dramatic increase in domestic production of gas resulted in the U.S.exporting large quantities of LNG,the U.S.has entered the global market in a major way.It's gotten to the point that,while one of the key questions regarding gas storage levels still concerns the weather,now it isn't just about the weather in the U.S.but also in Europe and Asia.”More and more we have to look at the global picture and what the weather might be like in Europe and Asia.It's becoming more important for the U.S.to focus on global markets,”Terry Ciliske,principal at En*Vantage Inc.,told Midstream Business.As U.S.LNG exports continue to increase,that increases the number of drivers from around the world that impact domestic markets,including U.S.gas storage injections and withdrawals.This makes it more difficult to forecast natural gas storage levels,even on a short-term basis.
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