Zeta made landfall in the Yucatán Peninsula north of Tulum, Mexico, as a Category 1 hurricane Monday night, bringing heavy rains and possible storm surge to a region struck by Delta just three weeks ago. It weakened slightly to a tropical storm but is expected to strengthen back into a hurricane over the Gulf of Mexico before reaching the US coast Wednesday. Hurricane warnings for the storm extend from Morgan City, Louisiana, to the Mississippi/Alabama border.
Although #Zeta is not expected to be a powerful storm, it’s still headed straight through GoM offshore production. The BSEE.gov reported 162 MMcf/d of natural gas and 294 bpd of oil shut-in as of yesterday. In today’s nomination data, total GoM natgas production looks to be down by over 1 Bcf/d.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 86.5 Bcf/d this morning. Today’s estimated production is -1.76 Bcf/d to yesterday, and -2.45 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 85.5 Bcf today, -0.83 Bcf/d to yesterday, and +9.11 Bcf/d to the 7D average. US power burns are expected to be 29.54 Bcf today, and US ResComm usage is expected to be 26.3 Bcf.
Net LNG deliveries are expected to be 8.8 Bcf today.
Mexican exports are expected to be 6.3 Bcf today, and net Canadian imports are expected to be 4.5 Bcf today.
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ION-Energy-Daily-Report-Oct-27-2020.pdf