Massive contrast between colder than normal temperatures in Nov-2014 and above normal temperatures in Dec-2014 have caused very high price volatility in the Natural Gas futures market. Shifts in weather forecasts and record production have been the main price action drivers during the first half of the winter.
Topics: system operators, Acclaim Energy Advisors, energy management consulting, risk management, energy procurement, weather outlook, reliable energy, demand response, energy regulations, energy savings, power generation, Weekly Energy Insights, natural gas, energy management, energy management consultants, strategic energy sourcing, reserve margin, energy price spikes, Price Spike, energy blog, power outages, Natural Gas Supply, NG Demand, energy supply, Winter Weather, demand, scarcity pricing, current outlook
During the fall, meteorologists sharpen their assumption to build their probability weighted winter weather forecast scenarios. From an energy perspective, this is also a critical time of the year. Since it is typically a period of low energy demand, there tend to be seasonal dips that provide good buying opportunities in natural and electricity. This year though, natural gas prices have been seesawing since mid-July 2014 due to the following reasons:
Topics: Heating Season\, Polar Vortex, Texas Energy, forward curve, winter strip, spot price, energy risk management, energy sourcing, Acclaim Energy Advisors, energy management consulting, energy, energy procurement, weather outlook, reliable energy, energy costs, power generation, Weekly Energy Insights, natural gas, Event, energy management, energy management consultants, strategic energy sourcing, reserve margin, Price Spike, energy blog, power outages, Natural Gas Supply, price volatility, reserve, report, energy storage, NG Demand, seasonal drought, energy supply, EIA, Texas, Winter Weather, U.S. energy, NG, forecasting, refueling season, NG contract
A brutal cold start of the year has been followed by moderate temperatures across the country. Natural gas prices have risen significantly since early January 2014, as inventories were being depleted at a faster than normal rate due to higher than normal heating demand. Nevertheless, record production and tepid demand after the spring months triggered a massive selloff in mid-June 2014, with the front month losing more than 20 percent to date. Early concerns of tight supply conditions ahead of the next heating season have eased due to weekly record or near-record injections. Electricity prices have also plunged not only because of the recent drop in natural gas prices, but also because of a drop in heat rates. In Texas, peak load had not been this low in June and July since 2010. Low electricity demand has depressed spot and forward heat rates.
Topics: energy risk management, energy sourcing, Acclaim Energy Advisors, risk management, energy procurement, weather outlook, reliable energy, demand response, energy reliability, power generation, Weekly Energy Insights, natural gas, Event, economic demand response, energy management, energy management consultants, strategic energy sourcing, Hurricane Season, reserve margin, energy price spikes, renewable energy, Price Spike, energy blog, power outages, Natural Gas Supply, price volatility, reserve, report, energy efficiency, mild weather, energy storage, NG Demand, seasonal drought
A great deal has been made out of the need to shift away from coal fired power plants and toward renewable energy sources, such as wind and solar in the U.S. While this is certainly a laudable goal, the full impact of a move to renewable power generation has consequences beyond simply reducing emissions and finding alternative power sources. Specifically, determining how to effectively integrate these new power sources, particularly wind and solar, which are highly variable and can go from zero to full production almost instantaneously, pose significant challenges for grid operators.
Topics: system operators, coal, energy risk management, energy sourcing, Acclaim Energy Advisors, risk management, energy, energy procurement, demand response, energy regulations, energy reliability, energy savings, energy costs, power generation, Weekly Energy Insights, natural gas, economic demand response, energy management consultants, strategic energy sourcing, energy price spikes, renewable energy, energy supply, U.S. energy, load generators
Part 2 of the 4 Major Energy Developments in 2013 deals with two more trends that have impacted wholesale market prices this year:
Topics: energy risk management, energy management consulting, PJM, strategic energy sourcing, EPA
As we near the end of the summer, it is worthwhile to examine trends that have had an effect on energy procurement in 2013. The focus will be specifically on the deregulated electric and natural gas markets, through the first two-thirds of 2013. The first two developments that will be covered in this blog are:
Topics: energy management consulting, PJM, strategic energy sourcing
