American Oil and Gas Reporter - December 2015 - 16

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EIA Reports Record Gas Storage,
Recategorizes Regions

WASHINGTON-The U.S. Energy
Information Administration unveiled
new classifications for natural gas storage regions on Nov. 13 while reporting
that total gas in storage had reached a
record 4.000 trillion cubic feet.
EIA says the Nov. 13 storage volume
was 5.5 percent above the five-year average and 123 billion cubic feet more
than the 3.877 Tcf in storage on Oct. 23,
which was 4.1 percent above the fiveyear average. The Nov. 13 storage number was 404 Bcf more than a year ago,
when total gas storage stood at 3.596
Tcf.
EIA says changes in regional trends
in natural gas consumption, production
and storage led it to recategorize its storage regions. The new regions split each
of the previous two consuming regions
into two parts, while the former producing region is now largely encompassed
by the South-Central Region, the agency
says (Figure 1).
"With a few ex- FIGURE 1
ceptions, the states
New Regions
previously grouped
as the consuming
East Region are
now in two groups:
the Midwest and
the East," EIA explains. "The main
difference is the
type of storage facilities. The MidOld Regions
west Region has
more than 85 percent of all natural
gas storage aquifers
in the nation. This
type of field tends
to have only one
cycle a year, reflecting the more
stable and predictable behavior
of aquifers."
By contrast, EIA continues, storage
facilities in the East Region consist almost entirely of depleted fields, which
generally offer a higher degree of flexibility to inject or withdraw gas at any
time. As a result, EIA says, net movements into and out of storage in the East
Region show more variability than those
in the Midwest.
The previous West region was split
into two regions: the Pacific and Mountain regions, EIA reports. "Although
both the new Pacific and Mountain re-

16 THE AMERICAN OIL & GAS REPORTER

gions are dominated by storage in depleted fields, average deliverability of
fields in the Pacific is close to 500 million cubic feet a day, which is nearly
three times higher than that of the
Mountain Region," the agency outlines.
"Many facilities in the Pacific Region
use storage actively to respond to price
conditions and demand."
With the exception of New Mexico,
which is now in the Mountain Region,
EIA says, the producing region is relatively unchanged, but has been renamed
the South-Central Region. "The SouthCentral Region is home to most of the
U.S. salt dome storage facilities, which
are able to cycle gas much more rapidly
than either depleted fields or aquifer
storage," the agency points out.
Gas storage in the South-Central Region stood at 1.347 Tcf on Nov. 13, 11.8
percent above the five year average, EIA
reports. Gas storage in the South-Central
Region was 228
Bcf more than a
year ago. Gas
stored in the old
Producing Region
stood at 1.352 Tcf
on Oct. 23.
EIA says gas
storage in the new
Pacific
Region
was 381 Tcf on
Nov. 11, while
storage in the
Mountain Region
was 214 Tcf.
These volumes
were 6.4 and 0.5
percent above the
five-year average,
respectively, and
compared
with
349 Tcf in the Pacific Region and
185 Tcf in the
Mountain Region a year ago. EIA reports
gas storage in the old western consuming
region was 531 Bcf on Oct. 23.
Gas storage in the Midwest Region,
according to EIA, stood at 1.124 Tcf on
Nov. 13, while gas storage in the new
East Region was 934 Bcf. Those volumes were 3.0 and 0.9 percent above
their respective five-year averages, and
compared with 1.051 Tcf stored in the
Midwest Region and 892 Bcf in the new
East Region a year ago. EIA says the old
eastern consuming region had 1.994 Tcf
in storage on Oct. 23.
r

upwind states implemented measures
that cost $100 a ton (AOGR, September
2015, pg. 20).
In the proposal it unveiled on Nov.
17, EPA recalls that the rule
originates in the Clean Air Act's
"good neighbor" provision, which
requires state or federal regulators to
address interstate transport of air
pollution that affects the ability of
downwind states to attain and
maintain clean air standards.
"Specifically, the proposed updates
identify cuts in power plant NOx
emissions in 23 states in the eastern half
of the country that contribute
significantly to downwind ozone air
quality problems and can be achieved
using existing, proven and cost effective
control technologies," EPA says.
The agency adds that it also is
proposing federal implementation plans
for each of the 23 states in the event a
state fails to submit an approvable state
plan.
EPA estimates the proposed
CSAPR will cut summertime NOx
emissions from power plants in the
East by 85,000 tons in 2017, adding
that when it is combined with other
changes under way in the power
sector, NOx emissions will be 150,000
tons lower in 2017 than in 2014,
which represents a 30 percent
reduction.
EPA indicates the proposed
CSAPR update rule affects 3,047
electric generating units at 913 coal-,
gas- and oil-fired facilities in 23
states: Alabama, Arkansas, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maryland, Michigan,
Mississippi, Missouri, New Jersey,
New York, North Carolina, Ohio,
Oklahoma, Pennsylvania, Tennessee,
Texas, Virginia, West Virginia and
Wisconsin.
It goes on to say that for the 2017
ozone season, EPA finds that power
providers can achieve quick,
affordable and meaningful NOx
reductions by optimizing operation of
existing pollution control technology,
turning on idled pollution controls,
upgrading to state-of-the-art
combustion controls, and shifting
generation to lower-emitting power
plants. ❒

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American Oil and Gas Reporter - December 2015

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