
Market Outlook
The best energy solutions emerge from many factors. A prime example is the energy market itself — something our team is well-versed in considering on your behalf. Here's an overview.
Natural Gas
NYMEX Natural Gas Pricing
The August 2022 contract settled at $8.867/MMBtu.
The September 2022 contract was trading around $8.18/MMBtu (as of publish date).
Natural Gas Storage
Current BCF in Storage (2022 vs 2021):
Week Ending | Total BCF | Week Ending | Total BCF |
01-Jul-22 | 2,311 | 02-Jul-21 | 2,574 |
08-Jul-22 | 2,369 | 09-Jul-21 | 2,629 |
15-Jul-22 | 2,401 | 16-Jul-21 | 2,678 |
22-Jul-22 | 2,416 | 23-Jul-21 | 2,714 |
29-Jul-22 | 2,457 | 30-Jul-21 | 2,727 |
There is about 10% less in underground storage now than there was at this time last year.
Source: EIA
Market News
U.S. average monthly Henry Hub spot price more than doubles in 12 months
https://www.eia.gov/naturalgas/weekly/archivenew_ngwu/2022/07_07/
Over the past year (July 2021–June 2022), the average monthly spot natural gas price at the U.S. Henry Hub more than doubled, rising by $3.86 per MMBtu from $3.84/MMBtu in July 2021 to $7.70/MMBtu in June 2022. The main reason for the increase would be that inventory levels have remained low while demand growth outpacing growth in domestic production.
U.S. refined coal production and consumption declines with the expiration of a tax credit
https://www.eia.gov/todayinenergy/detail.php?id=53099
At the end of 2021, the refined coal production tax credit expired, which could be affecting refined coal production and consumption. Refined coal production in the US dropped significantly during the first quarter of 2022 as refined coal consumers used their remaining small stockpiles. The tax credit was also responsible, in part, to reduce coal-fired plant emissions.
The United States became the world’s largest LNG exporter in the first half of 2022
https://www.eia.gov/todayinenergy/detail.php?id=53159
Comparing the second half of 2021 to the first half of 2022, LNG exports increased by 12%, averaging 11.2 Bcf/d. U.S. LNG exports continued to grow for a couple reasons—increased export capacity, increased international natural gas and LNG prices, and increased global demand (particularly Europe).
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