The Desk
Exclusive: New BENTEK Reports

Friday, November 17, 2006

Bentek Energy's Rusty Braziel called Us Late This Week for a briefing on the firm’s latest round of new products and services for gas and power traders. We were impressed. The new info and data services include the Natural Gas Supply/Demand Balance Report, the Flash! Pipeline Alert Notices and, on the power side, the Nuclear Power Plant Status Report, aka, the Nuke Report and others.

This last one computes the megawatts displaced and the incremental gas burned due to nuclear power plants being offline. Said another way, it tells you what gas is burned to replace all nuclear power plants that are offline at a point in time. Finally, the Pacific Northwest Hydro/Transmission group of weekly reports.

Lots of new stuff, way too much to detail in one story. For now, we think everybody needs to check out the new Natural Gas Supply/Demand Balance Report. This one provides an estimate of total US demand, production, imports/exports and storage injections/withdrawals. Think of it as a daily version of the EIA Natural Gas Monthly report, because the numbers are directly comparable to EIA. The report’s Demand section provides regional totals from all delivery points on each interstate pipeline that are classified as demand points – power plants, local distribution companies, industrials, municipals, etc.

Bentek collects all volumes scheduled into these points each day, uses the total as a proxy for the demand for all facilities receiving gas via interstate pipelines, then models the demand received by all other facilities by correlating Bentek demand data with historical demand data from the US Energy Information Administration (EIA).

They next go through the same process in the Supply section for gathering systems, natural gas processing plants, producing fields, etc. Daily Canadian Imports/Exports are summarized directly from pipeline receipts and deliveries, and are near equivalent to EIA historical data. Similar modeling processes are used to estimate Mexico exports/imports. LNG imports are estimated by using LNG deliveries from each LNG terminal into the interstate pipelines attached to those terminals. This stuff is very solid.

The good folks at Bentek forwarded to us most of the key bits you might find in a daily Supply/Demand Balance Report so we could share it with The Desk subscribers. Have at it. We’ll run our full interview with Braziel on all the new products next time.