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 September 2022 contract settled at $9.353/MMBtu. 

The October 2022 contract was trading around $9.18/MMBtu (as of publish date).

Source: CME Group

Natural Gas Storage

Current BCF in Storage (2022 vs 2021):

Week Ending Total BCF Week Ending Total BCF
05-Aug-22 2,501 06-Aug-21 2,776
12-Aug-22 2,519 13-Aug-21 2,822
19-Aug-22 2,579 20-Aug-21 2,851
26-Aug-22 2,640 27-Aug-21 2,871

There is about 8% less in underground storage now than there was at this time last year.

Source: EIA

Weather

6-10 Day

Visit the National Weather Service website to get the 6 to 10 day outlooks.

8-14 Day

Visit the National Weather Service website to get the 8 to 14 day outlooks.

Source:NOAA/ National Weather Service

Market News

Pipeline projects announced to expand Permian natural gas capacity

https://www.eia.gov/todayinenergy/detail.php?id=53319

Three expansion projects were announced in May & June of 2022:

1)        Gulf Coast Express – enter service by 12/2023

2)      Permian Highway – enter service by 11/2023

3)      Whistler Pipeline – enter service by  9/2023

New Pipeline announced in May: Matterhorn Express.  It will be 490 miles long, able to transport 2.5 Bcf per day from Waha Hub to Katy, TX and should be in service by 3Q24.

The pipeline under construction – and expected to be in service by the end of 2022: Oasis Pipeline Modernization Project.  

Energy production declined by record amounts in several states in 2020

https://www.eia.gov/todayinenergy/detail.php?id=53359

In 2020, energy production in the United States fell by record amounts since the year before, mostly due to decreased economic activity during the pandemic.  U.S. coal production fell by 25% ( its lowest level since 1965), crude oil production fell by 8%, natural gas decreased by less than 1%, renewable energy increased by less than 1% and nuclear generation fell by 2%.

Turmoil in the natural gas market spells trouble ahead

https://www.cnn.com/2022/08/23/investing/premarket-stocks-trading/index.html?utm_source=facebook&utm_medium=news_tab

After the announcement that Russia's Gazprom would suspend flows to Germany via the Nord Stream 1 pipeline, European natural gas prices remain steady at rates almost 10 times higher than last year.  In the United States, prices are significantly lower, but still rising, too.  US prices have hit their highest level in 14 years.  Increased energy use during heat waves, demand from Europe as countries try to stock up for winter and lagging production are some of the main causes of US jumps. 

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