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All About Energy

Utilities Hedging Fuel Costs In Favor Of Price Stability

Chris Ward Apr 8, 2016 8:01:00 AM
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The overabundance of supply, paired with weather anomalies (cold spikes and early summers), has caused major upsets in the energy market over the past 10 years.  

 

For both residential and commercial customers, the unforseen increased use in storage levels and unpredictable weather conditions have resulted in volatile price swings.  Utilities will typically mitigate their risk by hedging fuel costs, but has it truly been beneficial to the customers?

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What Wikipedia Can't Tell You About the Natural Gas Price Forecast

Chris Ward Feb 9, 2016 3:28:53 PM
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Will LNG exports and globalization impact U.S. natural gas price forecast?

The answer to the above question is yes, so let’s look at exactly how that will happen.

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Gas Prices Down, But Energy Rates Still Going Up

Eli Sachs Jan 26, 2016 12:11:00 PM
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If natural gas prices are so low, then why are energy rates increasing? I get asked all of the time, and it is a great question that I will address here. I like to look at all-in energy rates as a cake. While flour is the main ingredient, there are close to a half a dozen other components that make up the final product. Electricity and natural gas consumption aren’t too different.

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Will Natural Gas Prices Rebound to $3.00 in 2016?

Curtis Funderburk Jan 12, 2016 9:41:46 AM
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As was suggested a month ago, the market started getting a round of year-end short covering into the end of December.  Prices continued rallying into last week on a more supportive weather regime, reports of lower U.S. production out of the EIA, a move out of grossly oversold market conditions, and a stronger technical pattern on the charts.

  

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Energy Prices in 2015 and What to Expect in 2016

Andrew Barth Dec 22, 2015 2:16:08 PM
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As the new year approaches, we take a look at energy prices in 2015 and what new trends to expect in 2016.

 

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The Force Awakens with Natural Gas Today

JB Sowyrda Dec 17, 2015 12:02:00 PM
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Even though Jan 16’ is trading in the $1.80 range, buyers need to pay close attention to outer months, winter 16'-17' to be specific if you have a Q3/4 start date.  The latter half of the year is seeing an uptick of about $0.06-$0.07 and is creating a near $1.00 delta between promt month (Jan 16') and promt plus 12 months out (Jan-Feb 17').  

The near-term impact isn't significant right now as prices remain subdued, but a combination of economic events and winter finally appearing will likely help rally the bulls towards the latter part of 16'.  With that being said, the spikes expected towards the tail end of 16' could be short lived as E&Ps reverse course as economics improve.    

As we have seen, the excess gas in storage among other things have driven prices down to levels not seen in 10+ years; just the same, any shortage will likely drive the prices back up.  In my opinion, the combination of winter finally showing up this coming Jan. and Feb., the lowest drilling activity in decades, and oil and gas companies being out of cash to invest, the low prices we're seeing now will ultimately result in lower storage numbers heading into next winter, causing a spike in prices.  Oil and Gas companies will then increase their activity and drive prices down again in 2017.

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It's Getting Hot in Here... El Niño's on a Roll

JB Sowyrda Dec 10, 2015 4:37:31 PM
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It may come as no surprise to anyone that the El Niño we are experiencing is expected to be one of the top three strongest episodes for the Niño 3.4 region since 1950.  According to NOAA and many other models,  the strong, mature El Niño we are currently experiencing will continue through the Northern Hemisphere this winter and then slowly roll off into an El Niño-Southern Oscillation (ENSO)-neutral stage in late spring or early summer.

From NOAA's Climate Prediction Center: Seasonal outlooks indicate an increased likelihood of above-median precipitation across the southern tier of the United States, and below-median precipitation over the northern tier of the United States.

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A Nation Divided (into 5 Natural Gas Storage Regions)

JB Sowyrda Dec 9, 2015 3:54:12 PM
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To better represent the changing geographic dynamics of natural gas storage across the United States, the EIA has re-districted the storage regions into five groups and will now include Alaska. 

 

 

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Winter is coming... but nothing cool is happening.

JB Sowyrda Dec 3, 2015 2:05:40 PM
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Working natural gas storage fell below expectations to 3,956 Bcf, a net 53 Bcf decrease as compared to the previous week.

Gas storage surplus is now at 15.9% as compared to the same period last year and still remains above the five-year average (3,709 Bcf).

So what is the situation with natural gas right now?

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