Our Blog

Peak Oil

By Avalon Energy Services | May 20, 2015 | Comments Off on Peak Oil

Concerns and worry about Peak Oil are overstated and irrelevant.  Many articles and books have been written on the topic and many lectures given.  Dire predictions have been made and many people have concluded that because of peaking of crude oil production, the future of the human race is bleak. Peak Oil theory seems so…

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Three Years Ago

By Avalon Energy Services | Apr 13, 2015 | Comments Off on Three Years Ago

Just about three years ago, on April 19, 2012, the prompt-month (see Note 1) natural gas futures contract closed at $1.91 per mmBtu, a twelve year low.  On April 9, 2015, the prompt-month contract closed at $2.53 per mmBtu. Are natural gas prices higher now, in April 2015, than they were in April 2012? The…

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Urban Oilfield

By Avalon Energy Services | Mar 5, 2015 | Comments Off on Urban Oilfield

Los Angeles is an urban oilfield.  Within its limits are more than 50 oil fields, 3,000 active oil wells, and numerous tar pits (actually asphalt seeps).  During the 1920s, a quarter of the world’s crude oil production came from California, and the Los Angeles Basin was responsible for a large portion of that production.  It…

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Natural Gas Market Update

By Avalon Energy Services | Jan 7, 2015 | Comments Off on Natural Gas Market Update

Over the past 12 months, natural gas prices have fallen 52%. Looking ahead, the graphs below each look at natural gas prices in the futures market starting at two different points in time: June 24, 2014 and January 5, 2015.  The first graph extends two years into the future and the second graph five years. …

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Are Crude Oil and Natural Gas Reconciling?

By Avalon Energy Services | Dec 8, 2014 |

Crude oil prices have dropped 38% since June for two reasons.  Shale oil production in the US Bakken, Eagle Ford, and Permian basins has increased dramatically – by more than 4 million barrels per day since 2008.  At the same time, worldwide demand for crude oil has declined as a result of slowing economies in…

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Natural Gas Market Update

By Avalon Energy Services | Oct 22, 2014 | Comments Off on Natural Gas Market Update

The above graph looks at natural gas prices going back to January 1997. Natural gas prices have retreated from the Polar Vortex bump and remain relatively low by historical standards. The prices plotted above are not adjusted for inflation.  If they were in 2014 dollars, the left side of the curve would be more elevated. …

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In The News – Avalon Energy Services

By Avalon Energy Services | Aug 25, 2014 | Comments Off on In The News – Avalon Energy Services

Avalon Energy Services recently completed an electricity procurement project for KBS Capital Advisors’ One Washingtonian Center property in Gaithersburg, MD.  Marc Deluca, Regional President of KBS, noted that “Electricity markets have exhibited extreme volatility.  The folks at Avalon Energy Services have deep expertise and an unsurpassed understanding of the energy markets and how they work. …

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Capacity Factor – Part 2

By Avalon Energy Services | Jun 19, 2014 | Comments Off on Capacity Factor – Part 2

In our previous article we looked at Capacity Factor and how it differs between nuclear generation and solar PV (photovoltaic).   We concluded that in order to generate the same amount of electricity as 1/3 of the capacity of the US nuclear generation fleet (33,042 MW), 154,760 MW of solar PV capacity would be required.  This…

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Capacity Factor

By Avalon Energy Services | Jun 16, 2014 | Comments Off on Capacity Factor

In a recent article in the Energy Law Journal, the authors state, By as early as 2016, installed distributed solar PV capacity in the United States could reach thirty gigawatts (GW).  If that forecast is on track, distributed solar generation will have increased from less than one GW in 2010 to the equivalent of nearly…

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