On Jan. 23, the NYMEX February gas contract hit a 10-year low of $2.231/mmbtu, a price last seen in March 2002. Monday began what turned out to be a volatile week as Chesapeake Energy (CHK), the second largest gas producer, announced revisions to their 2012 outlook with an immediate cut in gas production and the possibility of further cuts. The announcement sent the NYMEX rallying 38 cents, or as much as 17% on Monday and further gains were made throughout the week. On Thursday, the rally stalled as weather forecasts for February continued to come in warmer than normal, returning…
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Posts Tagged ‘Natural Gas’
NYMEX Natural Gas Has a Volatile Week: Production Cuts & Weather Forecasts
Posted by CNE Market Intel
Will Natural Gas Storage Reach Full Capacity?
Posted by CNE Market Intel
Underground natural gas storage is at a record level and is poised to stay that way throughout the remainder of 2012. The glut of natural gas stems partly from the energy industry’s success with new and more efficient drilling techniques that has allowed production to skyrocket in areas known as shale formations. While production has been increasing, demand for natural gas has not been able to keep up, forcing producers to put their natural gas into storage.
The mild winter across the country has added to the supply/demand imbalance. During the winter season, natural gas is withdrawn from storage to…
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Natural Gas Prices Crumble Below $3 As Mild Weather Remains In Forecast
Posted by CNE Market Intel
After holding at the psychologically important level of $3/MMBtu for several days, the natural gas prices on the Nymex finally broke down this week after forecasts for mild weather led to fears that sustained heating demand would not arrive this winter.
Prices for February delivery opened the week at $3/MMBtu but quickly declined through and are currently $2.65/MMBtu, a drop of 12% on the week and bringing prompt month prices to the lowest settlements seen since September 2009. Although some of the major weather forecasters to the energy industry have noted there will be bursts of winter weather over…
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Snowpack’s Influence On Winter Heating Demand
Posted by CNE Market Intel
Both natural gas and power prices continue to experience considerable downward pressure due to the persistent above average temperatures present in the eastern two-thirds of the country. Weather-related demand, which is typically measured in Heating Degree Days (HDD’s), has been significantly lower than normal this winter.
This lack of demand has delayed the price support that we typically see at this point of the heating season. The HDD’s from Nov. 1, 2011 to the current day are -13% lower than the same period last year and are -8% lower than the 30-year normal. As a result, the prompt-month natural gas…
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Today’s Energy Environment
Posted by CNE Market Intel
Today’s energy environment is riddled with a number of significant factors that can affect your bottom line. Sluggish economic activity, record high natural gas production, and the EPA Clean Air Act rulings are all influencing the world of energy, and ultimately you as a consumer.
Environmental Policy Changes:
New and pending governmental regulations will most likely be an additional contributing factor to prices in 2012 and beyond. One such factor is the Cross State Air Pollution Rule (CSAPR), which was released by the Environmental Protection Agency (EPA) on July 7, 2011. This rule requires 27 states to significantly reduce…
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Executive Energy Forum 2011: Where Business, Energy & Policy Meet
Posted by Andrew Singer
A lot has changed since last year. We were on our way back from a recession. The Dow Jones was at 11,434. The nuclear renaissance was underway.
Now where are we? The recession is lingering. The demand for American products is soft. The Dow Jones rose to 12,810 before falling to 10,655. The disaster in Japan has changed the nuclear landscape.
Almost exactly a month ago, we hosted the Executive Energy Forum in Washington, D.C., where we convened with political experts, state and national energy policy leaders, and some of the most sophisticated energy users in the country…
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