PPT Slide Operators rely heavily on storage withdrawals to manage customer requirements as they vary due to temperature. The relation between storage withdrawals and price is not as defined as that with heating degree days because of the reverse causality between withdrawals and price.
Price can motivate storage activity, but storage activity also influences price.
For example, storage withdrawals can be increased as incremental supplies are introduced into the market in reaction to relatively high prices. In both cases, prices are relatively high, but the volumes of storage gas withdrawn for the market differ. The absence of a strong relation between storage utilization and wellhead prices indicates that volatility is unlikely to be managed effectively by gas from storage.