U.S. Winter Will Be Warmest in Five Years, Forecaster MDA Federal Says
The U.S. will have its warmest winter in five years, which will reduce demand for natural gas, according to forecaster MDA Federal Inc.
From December to February, the U.S. will experience 2,515 heating-degree days, said Travis Hartman, meteorologist with MDA Federal Inc.’s EarthSat Energy Weather in Rockville, Maryland, in an interview in Calgary today. That compares with 2,767 heating-degree days a year earlier and a 10-year average of 2,577.
“It’s a bearish forecast for sure,” Hartman said. Demand for natural gas will “be drastically reduced compared to normal.”
Heating-degree days are calculated by subtracting the average daily temperature from a base of 65 degrees, according to the National Weather Service. The higher the value, the colder the weather, and thus more energy is likely to be consumed to heat homes and businesses.
Natural-gas futures have declined 31 percent this year. Natural gas for September delivery fell 16.8 cents, or 4.2 percent, to $3.871 per million British thermal units on the New York Mercantile Exchange, the lowest settlement price since March 31. Prices were last below $4 on May 25.
Temperatures in New York will be 2.5 degrees higher than the 30-year normal this winter, while Chicago will see temperatures 2 degrees higher, according to MDA.
To contact the reporter on this story: Irene Shen in Calgary at ishen4@bloomberg.net.
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