Natural Gas Storage Save Your Bacon?
Houston is home to me, our company and many of our employees. The recent snow and bitter cold from the first polar vortex of 2025 hit home how vital a commodity natural gas is to our comfort, our safety, and life itself. Like you probably, I have read the writings of many making arguments for and against fossil fuels, nuclear and renewables. For those who have targeted natural gas to be expunged, if anything good comes out of frigid temperatures, let it be the understanding of how vital natural gas is to our current infrastructure and how we live TODAY. Certainly, we must be planning for tomorrow, however, to get there we must thrive today.
During this recent severe cold, it was, in fact, natural gas that bore the brunt of our energy needs and I couldn’t help thinking about natural gas marketers across the US whose businesses could be shattered if: 1) they don’t have a Storage strategy and, as a result, 2) they are buying gas on the spot market.
Some time ago, I posted the blog, ‘Soaring Gas Price … Are You in It to Win It with Storage?’, covering the topic of storage in the context of the profit opportunity a natural gas storage strategy represents. While I highlighted “Sidestep financial loss” and “Avoid spot market highs”, I didn’t forewarn “Be prepared for severe weather events” like what we just experienced as a good reason for a storage strategy. Instead, I strived to make the case for every natural gas business to have a storage strategy touting the upside without sufficiently emphasizing the downside, which several natural gas marketers have now experienced. I did round out my message with, “Despite this, even a conservative storage strategy is better than no storage strategy.”
So, the question is, did you act after reading my blog and how glad are you that you did so? If you didn’t and you wish to, contact us today and we will help you with this and other operational areas that will bolster the top and bottom lines of your Natural Gas business.
LDCs, Marketers, Pipelines, Producers and Utilities face increasing competitive and compliance pressures, requiring increased operational efficiency, data integrity and process improvement. Their operational systems must support this, but most do not. Engage us and we will show you how to make a breakthrough. It’s what we do for natural gas companies, and we are experts in our field.
nGenue enables Natural Gas Operational Excellence!
~Ken
