Gas prices in Texas recently dipped below $2/mmbtu. Companies are shutting in wells to avoid selling at such low prices. Nevertheless, record volumes of gas are going into storage.
The chart shows the five-year monthly average of gas in storage for the last five years, and the red line shows gas in storage this year. Gas in storage for August is already well above the last five-years' highest volume, and is sure to climb higher. We are likely to find out the true limit of how much capacity there is for gas storage in the U.S. Unless we have a very cold winter, this excess gas may continue to suppress gas prices for months to come.
