Wednesday, March 5, 2014

3/5/14 Market Snapshot: Natural Gas Consumption Reached Record High in 2013

Did you know? …  Natural gas consumption in the U.S. reached a record high of 26,034 billion cubic feet in 2013. Gas delivery to commercial customers in 2013 was the largest ever recorded, at 3,289 Bcf, according to the U.S. Energy Information Administration (EIA).

Electricity

· Electricity prices are slightly higher today in key consuming regions of the U.S., as below-normal temperatures are expected to affect  most of the U.S. throughout March.
· On February 28, the U.S. Department of Energy (DOE) announced new efficiency standards for commercial
refrigeration equipment, which are expected to reduce carbon pollution by 142 million metric tons, and save
businesses $11.7 billion on energy costs.

Natural Gas

· The April 2014 monthly Natural Gas NYMEX is up $.10 today at $4.59 per MMBtu.
· In 2014, natural gas prices have fluctuated daily by an average of $2.50, compared to $.60 in 2013. On February 24, prices reached a six-year high of $6.50/MMBtu before expiration.
· Last week, the EIA reported a withdrawal of 95 Bcf from natural gas storage. Storage is now at 1,348 Bcf.
· The storage deficit remains a concern, as last week’s storage level is 35% below the five-year average.

Crude Oil

· The April 2014 Crude Oil NYMEX price is down $1.21 at $103.71 per barrel.
· Last week, the April 2014 Crude Oil NYMEX price reached its highest level in five months, as concerns were raised regarding Ukraine and Russia.



Tuesday, February 25, 2014

APPI Energy Market Snapshot 2-25-2014


Did you know? … On February 19, the March 2014 monthly Natural Gas NYMEX closed at $6.15, which is the highest level since December 3, 2008.

 Electricity
· Electricity prices are slightly higher today in key consuming regions of the U.S., as below-normal temperatures are predicted for most of the U.S. throughout March 2014.

Natural Gas
· The March 2014 monthly Natural Gas NYMEX is down $.22 today at $5.22 per MMBtu.
· Yesterday, NYMEX natural gas prices saw the largest one-day drop since August 2007. Traders took advantage of the highest prices in five years, sending the prompt month declining before tomorrow’s March contract expiration.
· The U.S. Energy Information Administration (EIA) reported a withdrawal of 243 Bcf from natural gas storage last week. Storage is now at 1,443 Bcf.
· Because of delivery constraints, the day-ahead wholesale natural gas price at the Algonquin Citygate hub serving Boston reached $22.53 per MMBtu, the highest level ever recorded by the IntercontinentalExchange.
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Crude Oil
· The April 2014 Crude Oil NYMEX price is down $1.32 at $101.50 per barrel.
· In November 2013, the U.S. reached its lowest net trade deficit since 2009, according to the EIA. Since 2011, the volume of U.S. crude oil imports has fallen as domestic production has risen, but the annual average oil prices in 2012 and 2013 were historically high.

Thursday, February 20, 2014

Review your electricity bill

If your business contracted with an electricity supplier, you may notice a substantial increase on your electricity bills when your contract expires. Many customers default to a month-to-month, market-based price when their supplier contract expires. The electricity market is very volatile, causing market-based pricing to be significantly higher than most contracted fixed prices.


APPI Energy can review your supplier contract, if applicable, and negotiate a new supply agreement. To avoid higher electricity bills, contact Carrie Shepard at APPI Energy at 800-520-6685 or cshepard@appienergy.com.  

Tuesday, February 18, 2014

APPI Energy Market Snapshot - February 18, 2014

Did you know? …  The enrollment period for 2014 Demand Response programs is expiring soon. Contact APPI Energy at 800-520-6685 for more information on enrolling in Demand Response, which provides financial incentives for voluntarily reducing electricity usage during peak demand times.

 Electricity

· Electricity prices are slightly higher today in key consuming regions of the U.S. After a short-term warm front, cold weather is expected next week across most of the U.S.

· The U.S. Energy Information Administration (EIA) reported that New England’s highest peak-hour electric demand level in 2012 was 78% above the hourly average demand level.

· The EIA also reported that average heating degree days in the U.S. were 12% higher this winter than last winter, and 8% above the 10-year average.

Natural Gas


· The March 2014 monthly Natural Gas NYMEX price is up $.24 today at $5.45 per MMBtu.
  
· Last week, the U.S. Energy Information Administration (EIA) reported a withdrawal of 237 Bcf from natural gas storage. Storage is now at 1,686 Bcf.

· In March 2014, rapidly declining storage levels could reach the lowest level since 2004.

· Duke Energy announced it’s planning to sell off its portfolio of 13 power generation plants in the Midwest, including the natural gas-fired 620-megawatt Fayette Energy Facility in North Carolina.

Crude Oil

· The March 2014 Crude Oil NYMEX price is down $1.16 to $101.46 per barrel.


Tuesday, February 11, 2014

APPI Energy Market Update - February 11, 2014

Did you know? …  On January 30, the National Association of Manufacturers and the U.S. Chamber of Commerce Institute for 21st Century Energy launched a coalition of 75 organizations to weaken the EPA’s rules for power plants and to lobby against President Obama’s regulation of greenhouse gases.

Electricity

  • Electricity prices are relatively unchanged today. After a short-term cold front, the 10-day weather forecast is for warmer-than-normal temperatures across most of the U.S.
  • Yesterday, the Illinois Commerce Commission urged electric customers to review their existing contracts with retail electric suppliers, and expect variable rates to cause large increases in their electric supply costs, mostly because of recent extreme cold temperatures. Some fixed-price contracts may convert to variable rates after an introductory term or after the term expires. Contact APPI Energy at 800-520-6685 for a complimentary evaluation.

Natural Gas

  • The March 2014 monthly Natural Gas NYMEX price is up $.13 today at $4.71 per MMBtu.
  • Last week, the U.S. Energy Information Administration (EIA) reported a withdrawal of 262 from natural gas storage. Storage is now at 1,923 Bcf.
  • Storage levels are at a historical deficit—29% below last year’s level, and 22% below the five-year average. More large withdrawals are expected in February, which could reduce inventory to the lowest level since 2004.

Crude Oil

  • The March 2014 Crude Oil NYMEX price is up $.18 to $100.84 per barrel, which is a six week high. 
  • Oil-rich areas of the Eagle Ford Shale in South Texas are increasingly the targets for drilling new wells, mostly because of high oil prices and low natural gas prices, according to the EIA.

2014 Market Trends

  • Shale gas storage inventory: Gas storage levels are at a historical deficit. Strong withdrawals are expected throughout February, which drives up gas and electricity prices.
  • Drilling: Domestic production remains historically high, which drives down gas prices.
  • Weather: Winter temperatures increase heating demand, which drives up gas prices.


Wednesday, February 5, 2014

APPI Energy Market Snapshot - February 5, 2014

Did you know? … 
Last week’s natural gas market produced the most volatile daily price swings in several years, mostly because of severe cold weather in the eastern U.S., which is forecast to return and cause record-breaking demand for natural gas.

 Electricity
· Electricity prices are slightly higher today, as heating demand remains high in key consuming regions
of the U.S.
· The U.S. Energy Information Administration (EIA) reported that a lower emissions cap for the Regional Greenhouse Gas Initiative has taken effect in 2014, intended to limit carbon dioxide emissions from electric power plants by 45% by 2020. The nine states participating  in the program are CT, DE, MA, MD, ME, NH, NY, RI, and VT.
Natural Gas
· The March 2014 monthly Natural Gas NYMEX price is up $.16 today at $5.53 per MMBtu.
· On January 29, the prompt month hit the highest level since July 2011 at $5.47, and then fell 45 cents before closing.
· While near-term prices are volatile, long-term prices are stable, indicating storage levels may normalize.
· Last week, the EIA reported a withdrawal of 230 from natural gas storage. Storage is now at 2,193 Bcf.
· As gas demand for heating and power generation increases, experts predict storage levels will decrease to 1,400 Bcf in March 2014. Two withdrawals of more than 200 Bcf are expected in the next two weeks.
Crude Oil
· The March 2014 Crude Oil NYMEX price is up $.76 to $97.75 per barrel.
· March futures for WTI crude oil are decreasing, as U.S. manufacturing levels have weakened.




All information is provided “as is.” It is not intended as advice for any purpose. APPI Energy makes no representations or warranties, expressed or implied, as to the accuracy, completeness, or reliability of the information provided in this newsletter. APPI Energy assumes no responsibility for informational errors or incompleteness or for actions taken in reliance on the information herein. This snapshot is based on market information at a specific time. Energy prices change constantly.


Thursday, January 9, 2014

What is one of the most effective ways to reduce electricity costs & consumption?

One of the most effective and widely available ways to reduce electricity costs and consumption is participation in demand response programs; however, a large gap exists between interest levels and actual participation in such programs.

Demand response provides financial incentives for voluntarily reducing electricity usage during peak demand times when electricity prices are highest. The Energy Research Council’s latest report, Best Practices: Demand Response, shows that 28% of middle-market companies are very interested in demand response participation, but only 9% currently take advantage of demand response programs, which are becoming an increasingly important resource for grid operators during peak demand times.

View Report. For more information about participating in demand response, contact APPI Energy at 800-520-6685.