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 June 2022 contract settled at $8.908/MMBtu.

The July 2022 contract was trading around $8.48/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
06-May-22	1,643	07-May-21	2,029
13-May-22	1,732	14-May-21	2,100
20-May-22	1,812	21-May-21	2,215
27-May-22	1,902	28-May-21	2,313

There is about 18% less in underground storage now than there was at this time last year.

Source: EIA

Weather

6-10 Day

8-14 Day

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

Source:NOAA/ National Weather Service

Market News

FERC to monitor gas, power markets for manipulation as forward summer electricity prices jump up to 233%

https://www.utilitydive.com/news/ferc-gas-power-electricity-markets-prices-manipulation-/624120/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202022-05-20%20Utility%20Dive%20Newsletter%20%5Bissue:41903%5D&utm_term=Utility%20Dive

In mid-May, forward power prices in the PJM Interconnection averaged about $130/MWh for June through September. This is up 173% from last year’s average of $47.64/MW for the same period. The forward prices are driven by higher natural gas prices, expectations for a hot summer and increased demand stemming from LNG export potential. FERC Commissioner, Richard Glick, has stated that, “There’s certainly market fundamentals supporting a price increase from what it was last summer, but [industry executives] say it’s a lot higher than it should be. So that’s something we’re taking a look at, but I don’t want to suggest that we found anything.”

Power prices jumped 51% in PJM, 85% in New England in Q1 due to rising gas prices

https://www.utilitydive.com/news/power-electricity-prices-pjm-new-england-gas-lng/623724/?%3A+2022-05-13+Utility+Dive+Newsletter+%5Bissue%3A41737%5D=

Electricity prices in PJM jumped to $80.28/MWh in Q1 2022 from $53.30/MWh (Q1 2021).

Electricity prices in ISO-NE jumped to $137/MWh in Q1 2022 from $75/MWh (Q1 2021).

Henry Hub natural gas prices averaged $4.38 per MMBtu in January, up from $2.71/MMBtu in January 2021.

Henry Hub prices averaged $4.69/MMBtu in February 2022 and $4.90/MMBtu in March 2022.

FERC approves new natural gas pipeline projects to increase U.S. exports

https://www.eia.gov/todayinenergy/detail.php?id=52478&src=email

The EIA estimates that over 0.43 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity was completed in the first quarter of 2022. FERC recently approved 3 more projects that are expected to increase export capacity by an additional 1.77 Bcf/d once completed (expected 2023).

Investigation into solar tariffs could threaten the 2035 US clean energy goal, says DOE’s Granholm

https://www.utilitydive.com/news/investigation-into-solar-tariffs-could-threaten-the-2035-us-clean-energy-go/623282/?%3A+2022-05-06+Utility+Dive+Newsletter+%5Bissue%3A41592%5D=

The Department of Commerce has been digging into claims that solar panels, manufactured in four Southeast Asian countries, were made using parts coming from China that should have been subject to tariffs. The investigation is expected to come to a final decision as late as April 2023, but no short- or long-term fixes have been put in place yet. As a result, solar projects are coming to a halt, solar companies are considering lay-offs and our goal of 100% clean energy by 2035 could be abandoned!