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Bullboard - Stock Discussion Forum Birchcliff Energy Ltd T.BIR

Alternate Symbol(s):  BIREF

Birchcliff Energy Ltd. is a Canada-based intermediate oil and natural gas company. The Company is engaged in the exploration for and the development, production and acquisition of oil and gas reserves in Western Canada. The Company’s operations are focused on the Montney/Doig Resource Play in Alberta. Its operations are concentrated in the Peace River Arch area of Alberta. The Company has a 100... see more

TSX:BIR - Post Discussion

Birchcliff Energy Ltd > US Natural Gas Uses
View:
Post by Barkis on Dec 06, 2021 8:14pm

US Natural Gas Uses

Weather helps if you are hoping for those 300 bcf winter storage withdrawls but thats
only a smaller part of the NG picture now.

Storage is declining at a normal pace despite a very warm first half of autumn.

https://www.americanoilman.com/

Acording to the  5 yr gas storage history on the above site 800 bcf was withdrawn over a 3 week
period in Jan. 2018. I think that was the kind of scenario the market wll need to see to get 
gas prices back up to the $6 range and above. Nobody  knows if that will happen and it is still very early in the game. It would be nice for BIR but it is not necessary to justify a better price for the stock going forward.


The biggest thing that has changed in the last five years is the introduction of US LNG exports and exports of pipeline gas to Mexico. The US is poised to move into the numer one spot for LNG exports
with the latest (2) LNG facilites coming online now. Total US LNG gas demand should rise  from 12 bcf to 14 bcf per day when they are fully commmisioned. Thats an extra 730 bcf/day of gas demand per year. Gas in storage is current around 3,500 BCF and I am thinking that we probably do not
need a extra cold winter to drain storage to low levels by spring. Also last spring saw cold well
intto May (even in Europe - and that is what is root of the problem they have now with high gas prices).

https://www.eia.gov/energyexplained/natural-gas/use-of-natural-gas.php


Pipeline gas to Mexico is around 7-8 Bcf/day.

Mexico and LNG exports will total 22 bcf/day shortly

Total US dry gas production is around 90 Bcf/day

The US, Canada and even Mexico (west Coast)  all have  more LNG export facilities in he planning or construction phase.




https://www.eia.gov/energyexplained/natural-gas/use-of-natural-gas.php
Comment by Barkis on Dec 06, 2021 9:49pm
Another look at the EIA gas usage chart shows that the elecicity generation, industrial and transportation industries represent  about 70% of the total  US gas consumptions. Residential and commercial (which is mainly heating I guess) represents only 30%.  Have another look and see for yourself. https://www.eia.gov/energyexplained/natural-gas/use-of-natural-gas.php I also forgot ...more  
Comment by AboveBoard on Dec 07, 2021 7:52pm
This post has been removed in accordance with Community Policy
Comment by Dragon1 on Dec 10, 2021 6:36pm
I think you have grasped the essence of the situation increase use of NG is going to continu.
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