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 May 2023 contract settled at $2.117/MMBtu.
The June 2023 contract was trading around $2.200/MMBtu (as of publish date).
Natural Gas Storage
Current BCF in Storage (2023 vs 2022):
| Week Ending | Total BCF | Week Ending | Total BCF |
| 07-Apr-23 | 1,972 | 08-Apr-22 | 1,440 |
| 14-Apr-23 | 1,900 | 15-Apr-22 | 1,389 |
| 21-Apr-23 | 1,853 | 22-Apr-22 | 1,415 |
| 28-Apr-23 | 1,830 | 29-Apr-22 | 1,382 |
There is about 32% more in underground storage now than there was at this time last year.
Source: EIA
Weather
6-10 Day
8-14 Day
Source:NOAA/ National Weather Service
Market News
U.S. energy consumption increases between 0% and 15% by 2050
https://www.eia.gov/todayinenergy/detail.php?id=56040
Between 2022-2050, these energy sectors could see changes in consumption of the following amounts: Industrial sector, increase between 5% and 32%; Transportation sector, decrease of 10% to an increase of 8%; Residential sector, increase between 14% and 22%.
In addition, electric vehicles made up about 6%–7% of the 2022 U.S. vehicle market. As the adoption of EVs increases as projected, electricity purchased for transportation could increase about 900% to 2,000% between 2022 and 2050.
(see April 2023 report for graphic)
U.S. electric capacity mix shifts from fossil fuels to renewables in AEO2023
https://www.eia.gov/todayinenergy/detail.php?id=56160
After exploring scenarios that could affect the power grid, it is predicted that capacity will need to double in the next 30 years to meet the increasing demand for electric power. It is likely this new capacity would come from renewable energy because a decline in costs for solar panels, wind turbines, and batteries, plus additional government subsidies, would make renewables more cost effective than the alternatives.
(see April 2023 report for graphic)
Texas Senate passes $10B plan to develop 10,000 MW of gas-fired ‘insurance’ capacity
The Texas Senate approved an energy reform of a $10-18 billion “energy insurance program”. The reform aims to stabilize grid reliability through the development of new gas-fired power plants capable of providing 10,000 MW. However, uncertainty over the plan’s cost could threaten the measure’s chances in the Texas House of Representatives.
Earth just had its second-warmest March on record
https://www.noaa.gov/news/earth-just-had-its-second-warmest-march-on-record
The average global land and ocean-surface temperature for March was 2.23 degrees F above the 20th-century average of 54.9 degrees, ranking as the second-warmest March in the 174-year global climate record, behind March 2016. The 2023 year-to-date global surface temperature was the fourth warmest on record at 1.87 degrees F above the 20th-century average. Only the YTD for 2016 (warmest), 2020 (second) and 2017 (third) were warmer. Experts say it is quite possible that 2023 will rank among the 10 warmest years on record, with a high chance of ranking in the top-five warmest.
(see April 2023 report for graphic)
Archives
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