A Houston area meteorologist said last week that even in spite of recent rains, Texas still needs a good hurricane to break the devastating drought that gripped the state last year. As odd as that sounds, you might say the energy industry itself could use a few decent tropical storms if it hopes to rein in the storage refill.
Bentek Energy analysts recently noted the serious implications the early start to injection season has for US working gas storage capacity, "which will be tested in the coming months -- perhaps as early as this summer."
Bentek's conclusion: "The current high storage levels will intensify downward price pressure throughout the US this fall and likely force additional production shut-ins if stronger demand does not materialize this summer."
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