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).

Source: CME Group

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

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

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).

Archives

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