
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 February 2023 contract settled at $3.109/MMBtu.
The March 2023 contract was trading around $2.45/MMBtu (as of publish date).
Natural Gas Storage
Current BCF in Storage (2022 vs 2021):
Week Ending | Total BCF | Week Ending | Total BCF |
06-Jan-23 | 2,902 | 07-Jan-22 | 3,016 |
13-Jan-23 | 2,820 | 14-Jan-22 | 2,810 |
20-Jan-23 | 2,734 | 21-Jan-22 | 2,591 |
27-Jan-23 | 2,583 | 28-Jan-22 | 2,323 |
There is about 11% more in underground storage now than there was at this time last year.
Source: EIA
Market News
Wholesale U.S. electricity prices were volatile in 2022
https://www.eia.gov/todayinenergy/detail.php?id=55139
With extreme weather events, the average wholesale electricity prices at major trading hubs in the United States rose and were volatile throughout much of 2022. The limited availability of coal to substitute for higher-priced natural gas also contributed to the high prices.
Average cost of wholesale U.S. natural gas in 2022 highest since 2008
https://www.eia.gov/todayinenergy/detail.php?id=55119
In 2022, the natural gas spot price at the Henry Hub averaged $6.45 per MMBtu, the highest annual average since 2008! Check out the article for specific price fluctuations per quarter!
EIA forecasts lower wholesale U.S. natural gas prices in 2023 and 2024
https://www.eia.gov/todayinenergy/detail.php?id=55219
The EIA forecasted that the natural gas spot price at the Henry Hub will average $4.90 per MMBtu in 2023 which is more than $1.50 per MMBtu lower than the 2022 average. The EIA also expects prices to stay nearly the same in 2024 as dry natural gas production continues to grow in the US and outpaces domestic natural gas demand and exports for most of the year.
Constellation, NRG and other generators urge FERC to reject PJM’s mid-capacity auction rule change
https://www.utilitydive.com/news/constellation-nrg-ferc-pjm-capacity-auction-proposal/640926/
Major generators and clean energy trade groups are urging federal regulators to reject PJM’s proposal to change capacity market rules during an auction stating it would undermine certainty in wholesale power markets. On the other hand, PJM’s market monitor and state regulators generally support the proposal, as it would address a flaw in rules that PJM said would lead to a 400% increase over what they’d have expected for capacity prices in the Delmarva Power South area.
2023 Outlook: US power sector trends to watch
Utility Dive identified 9 trends to watch in 2023: FERC; Congress; cybersecurity; reliability; renewable energy; Hydrogen; energy storage; nuclear power and EVs. Check out the article to see a summary of each trend!
Archives
Find and download previous Market Outlook reports.
Let's get started
Submit your information and one of our procurement advisors will contact you to discuss pricing options for your facility.