“The Scoop” – Prices fall at most locations. Despite increased demand, flat supply, and expectations of continued hot weather, natural gas spot prices decreased at most locations this report week (Wednesday, July 13, to Wednesday, July 20). The Henry Hub spot price fell 9¢ from $2.81/MMBtu last Wednesday to $2.72/MMBtu yesterday. At the Chicago Citygate, prices fell 4¢ from $2.76/MMBtu last Wednesday to $2.72/MMBtu yesterday.Read More
Power burn drives consumption increases. During the report week, total U.S. consumption of natural gas rose by 5% according to data from PointLogic. Power burn rose by 9% week over week, averaging 35.2 Bcf/d this week and making up more than half of total consumption this week. Industrial sector consumption remained the same as last week, averaging 19.5 Bcf/d. In the residential and commercial sectors, consumption remained the same as last week, averaging 7.3 Bcf/d. Natural gas exports to Mexico fell by 3%.Read More
The Scoop – Energy pricing bounced back and forth this week ending relatively flat. Weather continues to be main driver as temps were 3% above normal for the nation. Also, contributing to pricing pressure upwards was the 9th straight week of below average storage injections as we stand 20.3% above last years numbers. The one factor keeping prices from rising was the still large inventory number of 3,179 Bcf.Read More
“The Scoop” – Market prices jumped up this week with a weak natural gas injection into storage of 65 Bcf. The price on the July contract has gone up 7% since first trading day of May 27th. Here are the main drivers as they are all bullish: temperatures across the US are above normal, natural gas rig count is at historical low and we are experiencing record natural gas generation burn.Read More
“The Scoop” – Market continues to provide great buying opportunities but mounting pressure is slowly pushing the pricing higher. The main drivers pushing prices higher: are the pull back in drilling production, lower than expected storage injections and above average summer weather forecast.
While the warmest winter on record combined with record storage inventories and production levels kept prices low this winter; the EIA Short-Term Energy Outlook projects a “gradual rise through the summer, as demand from the electric power sector increases.” It appears that this rise in prices is already in effect with demand increasing and production dropping to a YTD low last week. Overall prices this summer are expected to be lower than last year’s, but higher still than the 17-year lows hit during/after the winter.
Looking long-term, the IRS issued new production tax credit (PTC) guidelines that are expected to accelerate the trend toward increased installation of wind power generation. The new guidelines have been revised to state developers of wind generation have four years to complete a new project and qualify for the PTC. Early estimates expect wind generation capacity to increase over 20% and reach 100 GW by 2019.