Natural Gas Intelligence
EIA: Heat, Prices Drive Up Summer Gas Demand in Power Generation

Tuesday, September 11, 2012

Natural gas use in power generation has risen significantly this summer because of weather-driven demand for air conditioning and rock-bottom natural gas prices, the Energy Information Administration (EIA) said.

Citing figures from Bentek Energy LLC, the agency noted that daily natural gas use to produce electric power (also called power burn) has averaged 26.3 Bcf/d so far this year (Jan. 1 - Aug. 15), up 24% compared to the same period in 2011.

Bentek said 17 of the 25 highest days of power burn since it began estimating power burn in 2005 occurred between June 28 and Aug. 9 this summer, the EIA noted.

The National Oceanic and Atmospheric Administration reported the warmest first half of the year since 1895 in 28 states, and that heat continued in July and August (see Daily GPI, Aug. 9). U.S. population-weighted cooling degree days (CDDs), a measure of cooling requirements, averaged 26% higher than the 30-year average between Jan. 1 and Aug. 15, and has been consistently above average for most of the year.

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