Besides an uneventful 2013 hurricane season, which “technically” ends on November 30, the natural gas injection season is also coming to an end. According to the Energy Information Administration (EIA) storage injection report released on November 7, 2013, natural gas inventories are 1.5% above the five-year average. The latest near-term weather forecasts suggest that the gap will increase during the next two or three weeks. In other words, according to the EIA, there should be sufficient natural gas in storage to meet the projected natural gas heating demand for the upcoming winter.

Topics: Acclaim Energy Advisors, weather outlook, Weekly Energy Insights, natural gas, Hurricane Season, EIA, Texas

Video Outlook: August 2, 2012

A larger than expected injection of 28Bcf triggered a sharp selloff in the natural gas market. Likewise, a shift in forecasts calling for less intense temperatures contributed to the pullback. The September contract is now trading below $3.00/MMBtu, so such price has now become resistance. We have seen bargain hunting at this level; however, the degree of weather driven demand will dictate the next move.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Webinar, Weekly Energy Insights, natural gas

ENERGY INSIGHTS: JULY 18, 2012

Today above normal temperatures and nuclear outages drove prices close to $3.00/MMBtu. The imbalance between supply and demand continues to tighten, so be sure to contact your Acclaim representative to evaluate your current situation.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Weekly Energy Insights, natural gas

Energy Insights: July 3, 2012

NG futures modestly lower today as expectation of excessive heat have eased per the current 11-15 day forecast. Nevertheless, above normal temperatures are expected across most of the continental U.S., so weather will still offer some price support.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Weekly Energy Insights, natural gas

Energy Insights: June 14, 2012

Today the NYMEX NG July-2012 contract settled 14% (or $.298/MMbtu) higher and CAL-2013 settled 4.2% (or $.14/MMbtu) higher compared to yesterday’s marks. Prices continued the upward trend in after hours electronic trading. This week we cover how to manage current volatility and avoid getting caught in a short squeeze. 

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Weekly Energy Insights, natural gas

Energy Insights: May 31, 2012

Natural Gas

After reaching $2.75/MMBtu on 5/18/2012, price action for the June-2012 contract seesawed up until Thursday 5/24. Since then, NG futures have tumbled almost as fast as they rose. The decline showed that sustained prices above $2.50/MMBtu likely would inspire some switching back to coal.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas

Energy Insights May 23, 2012

High volatility in NG futures ahead of storage data release.  Fresh news will give the market more direction; however, this is becoming a weather driven market again, so prices will swing as conditions change. Regarding the electricity market, on 5/22/2012, ERCOT released a new long-term study which confirmed the potential of electricity shortages within the coming decade as electric use in Texas continues to hit new records.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas

Energy Insights: May 17, 2012

Natural gas futures have risen sharply from the 10-year lows set last month. This  rally has been driven by a combination of an increase in demand (mainly from coal to natural gas switching) and an increase in production cuts.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas

Energy Insights: May 9, 2012

Natural Gas closed today at a two month high on expectations of slower production and the prospect of more demand for the fuel by natural gas fired generation. Tomorrow, 5/10/2012, all eyes will be on the EIA’s storage report release at 9:30am CST. Expectations on the injection number for the week ending on 5/4/2012 range from 25Bcf to 55Bcf. This range is well below the average. Last year for this week, gas storage rose by 71 billion cubic feet, while the five-year average rise in the week is 84 billion cubic feet.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas

PUBLIC UTILITY COMMISSION OF TEXAS (PUCT) TENTATIVELY APPROVES OFFER CAP INCREASE

On 4/12/12, the (PUCT) voted 2-1 to move forward with a proposal that would allow wholesale prices to climb to $4,500/MWh when supplies are tight, up from the current $3,000 price cap. This change will be effective from 8/1/2012 to 5/31/2013. None of the three commissioners disagreed on the need to raise wholesale prices during times of supply scarcity, only the timing and the method.

Topics: ERCOT Heat Rates, Acclaim Energy Advisors, energy management consulting, Energy Solutions, Weekly Energy Insights, natural gas