An updated winter weather forecast was released and below average temperatures are expected in many parts of the south central and south eastern US. The National Oceanic and Atmospheric Administration is predicting above-average temperatures in the western US, Alaska, Hawaii and New England and the rest of the country falls into the “equal chance” category. This means these areas have an equal chance for above-, near-, or below-normal temperatures.
Although below average temperatures are expected in the south central and south eastern US, a repeat of last year’s extreme winter is unlikely. Chris Kostas with ESAI Power LLC expects weather-related demand and, in turn, gas prices to remain soft through December.
Gas production has been robust in 2014 hitting several new production records. The month-to-date production average is now 69.7 Bcf/day which is 5.2 Bcf/day higher than October 2013. According to the EIA, the 336 Bcf difference in storage from last year could be narrowed by 139 Bcf by the end of October.
Storage was slightly disappointing last report week with the expected injection at 96 Bcf and the actual injection only being 94. It was the 27th consecutive week in which the storage build exceeded the five year average injection (CenterPoint) and expectations for this week’s report is about 90 Bcf.
Weather side note: California is experiencing a record-setting drought and there is still a 67% chance that an El Nino will develop by the end of the year, though it is expected to be weak. An El Nino is a complex series of climatic changes affecting the equatorial Pacific region and beyond every few years. El Nino episodes often pull more moisture into California over the winter months.Read More
Sachse’s First Baptist Church and North Pointe Church of Christ, both clients of RPM, are working together to serve their community. Though their denominations are different, they share common goals: love their neighbor and provide food for those in need.
North Pointe Church of Christ has collected approximately 200 family bags of food for CrossRoads House, a food and clothing pantry located at Sachse’s First Baptist Church. The only food and clothing pantry in the Sachse area, CrossRoads House is open the second Saturday of the month from 9 AM to 11 AM and provides daily essentials at no cost to the consumer.
If you are interested in supporting CrossRoads House, or either church, please contact Jared Patterson at email@example.com or visit their websites linked above.
Winter is approaching without signs of colder-than-normal weather. Forecasters have been predicting above-average temperatures covering much of the country through the end of October (WSJ), thus delaying the usual heating demand and keeping natural gas prices relatively low. Last year’s average temperatures this early had the same effect, though the late push of record cold temps late into last winter drove up the market to multi-year highs. Stay tuned for future forecasts depicting late winter weather.
Most predictions for last week’s storage injection were roughly 92 Bcf, which proved to be relatively accurate. The actual injection for the report week stood at 94 Bcf, larger than last year’s 79 Bcf build for the same week and the five year injection rate of 78 Bcf. Natural gas storage is now within 10% of last year’s and the 5-year average for the first time all year. Three weeks remain in the injection season.Read More
The EIA released the revised version of the Short-Term Energy Outlook. In it, the EIA projects that average US expenditures for energy will decrease this winter heating season (October 1 through March 31) compared to last winter. Additionally, using forecasts from the National Oceanic and Atmospheric Administration, the EIA predicts the number of heating degree days – a measure of heating demand – will fall 12 percent this year.
Last week’s storage injection of 105 Bcf didn’t quite meet the predictions for 109 Bcf and the market reacted by rising 4 cents. Regardless, this was the second straight week of triple digit injections and two weeks remain where Gexa has predicted 100+ injections. There are four weeks left in injection season but don’t forget that injections have continued into November for the past 11 years.
Storage levels have yet to breach the 10% deficit from last year.
For more information, please visit the EIA’s Short Term Energy Outlook.Read More
Solar Power World magazine released its list of the top commercial solar contractors for 2014. One of our vendors, Borrego Solar Systems from San Diego, California, placed 22nd out of 400 solar contractors. With over 30 years of industry experience and knowledge, Rapid Power Management is proud to partner with them. Borrego Solar has completed projects throughout California, the Southwest, New England, Texas and the mid-Atlantic. To view their projects, please click here.Read More
As people tightened their spending in the last economic recession, golf play took a hit and trends have been down for youth starting golf and staying with the game. Eagle Golf is an innovative company in the golf industry, and has come up with an exciting new strategy to get more people on their courses in the DFW area. Tee boxes and flags line some areas of their courses where you can shoot a soccer ball into a 21 inch cup on the green. Coined ‘FootGolf’, it is a combination of both soccer and golf. Bring your own soccer ball or rent one from the golf shop and take your best kicks at each hole that is flagged for the sport. Eagle Golf provides scorecards and different par numbers for each hole – each kick on the hole is scored just like a golf round.
Lake Scalise, Energy Manager with RPM, took his oldest daughter’s soccer team to Plantation Golf Course in Frisco for some FootGolf fun and team building. Everyone had a great time, and was excited about coming back to play another round sometime soon. Lake said the Dads had so much fun that they might be back on the Foot Golf course again before their daughters. Eagle Golf now has some new customers from this fun endeavor and we are happy to support their new effort in growing family fun on their courses!
Eagle Golf has three courses in DFW with FootGolf – Lake Park Executive Course, Plantation Golf Course and Mansfield National Golf Club. For more information on FootGolf please visit the AFGL Website here.Read More
This report week’s natural gas injection was 112 Bcf. The report beat market expectations (around 105-107 Bcf) as well as last year’s 99 Bcf injection and the five year injection average of 85 Bcf. Five weeks remain in the injection season but injections have run into November the past 11 years. In order to reach the EIA’s projection of 3,477 Bcf in storage by the end of injection season, injections will need to meet or beat 75 Bcf/week.
Gexa’s prediction of 100+ Bcf injections continues for three more weeks. This would definitely help reach the end of season expectations.
We still remain 10% below storage levels from last year. Until that gap is minimized, it will continue to have a bullish effect on the market – mainly due to uncertainty. Consumption is expected to grow 1.8% in 2014 overall and the GDP’s 4.6% growth in Q2 reveals an increased demand for energy.Read More
Companies like CenterPoint Energy, Inc., Berkshire Hathaway Inc. and Hunt Consolidated Inc. are beginning to explore bids for Energy Future Holding’s (EFH) Oncor utility. After it’s bankruptcy in April, EFH planned to split Oncor from the rest of the companies. Valued at more than $17.5, Oncor has a total of 10 bidders who have signed non disclosure agreements.
Oncor delivers electricity to more than 3 million homes and businesses in Texas.
For more information please click here.Read More
Yesterday, September 25, Panda Power commissioned a 758-MW combined-cycle power plant in Temple, Texas. The facility has the capacity to power the needs of up to 750,000 homes. A second power plant will come online next summer. It has an expected output of 1,516 MW.Read More
WSI released the latest forecast for the October through December months. Mild weather has been prevalent across the United States, especially compared against the temperatures we would normally see for this time of year. Below normal temperatures are estimated to continue through the fall season for the central US and above normal temperatures are expected on both coasts. WSI states that while it is still early, the greatest risk for cold weather will occur during the back half of the winter in the Eastern US. Because of the forecasts, it is estimated that weather-related energy demand will remain soft through the end of the gas injection season. Please see the chart below.
The storage injection this report week was 97 Bcf – in line with the expectations from 88 to 101 Bcf. This surpassed last year’s 81 Bcf injection and the five year injection rate of 79 Bcf. Gexa estimated last week that injections would meet or surpass 100 Bcf the next five weeks. That leaves four weeks of 100+ Bcf injections. This weeks 97 Bcf injection didn’t meet the 100 Bcf injection but did come close. The EIA predicts 3,477 Bcf in storage at the end of injection season while Gexa is predicting 3,600 Bcf. Six weeks remain in the injection season.
Overall natural gas demand was down 4.9% thanks to the weather.Read More