March 2016, Vol. 243, No. 3

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High Production, Low Prices Mean Little Change in Natural Gas Storage Capacity

High levels of natural gas production and relatively low natural gas prices are affecting markets for seasonal natural gas storage, including the value of additional storage capacity. For the second year in a row, no new natural gas storage facilities were added, and the slight changes, both positive and negative, at existing storage fields resulted in national storage capacity remaining essentially flat for the year. EIA measures natural gas storage capacity inNovember each year, which is typically when net storage withdrawals begin. With elevated natural gas production, prices have been low and stable in recent years. Natural gas storage facilities have traditionally served as a physical

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