Winter Storms Rapidly Drain U.S. Natural Gas Inventories

Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.

Winter sunrise under a red sky

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NASHVILLE, TENN. (RFD NEWS) — Severe winter weather sharply tightened U.S. energy supplies, driving a record drawdown in natural gas storage and lifting heating and power costs across much of the country.

According to the U.S. Energy Information Administration, working natural gas stocks fell 360 billion cubic feet for the week ending January 30 — the largest withdrawal ever recorded. The pull was nearly 90 percent larger than the five-year average for the same week and pushed inventories to slightly below normal seasonal levels.

Winter Storm Fern stretched from New Mexico to New England, boosting heating demand while freezing wellheads and pipelines along the Gulf Coast. Residential and commercial consumption surged nearly 29 percent above normal, while production dropped due to freeze-offs and shut-ins. The combination tightened supplies quickly.

Prices reacted immediately. The Henry Hub benchmark climbed to $9.03 per MMBtu, more than doubling week to week and running over $5 higher than a year ago.

Higher natural gas prices ripple through agriculture, affecting grain drying, irrigation energy costs, and nitrogen fertilizer production.

Farm-Level Takeaway: Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
Tony St. James, RFD NEWS Markets Specialist
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Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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