Depressed gas and electricity markets present one of the best buying environments in many years, even for terms as far out as 2020. This is particularly noteworthy considering the much higher price levels and prevailing market anxiety as we emerged from the Polar Vortex a year earlier.
In March 2014, natural gas (NG) inventories fell to 822 Bcf after a brutally cold winter that boosted heating demand well above normal levels. The sharp decline in inventories kept natural gas and electricity prices higher through most of 2014. However, record natural gas production, especially from shale plays including Marcellus have slowly replenished storage. Currently natural gas production is between 5 -7 Bcf higher compared to last year, so supply could outweigh demand throughout 2015.
