NCAC – 22nd Annual Washington Energy Policy Conference

ONE WEEK FROM TODAY Secure your spot here: https://www.ncac-usaee.org/event-2845352 Energy Technologies and Innovations: A Disturbance in the [Market] Force Thursday, April 12, 2018, 8:30 AM to 6:00 PM The George Washington University Keynote speakers: Mark P. Mills, Senior Fellow, Manhattan Institute Gil Quiniones, President and CEO, New York Power Authority In addition to these keynote…

Read More

In The News – Avalon Energy Services, LLC

In his year-end review titled, “Gas Industry Looks Optimistically at 2017,” PointLogic author Kevin Adler quotes our COO, Jim McDonnell. Scroll down to the bottom of the report which you can find here. The Avalon Advantage – Visit our website atwww.AvalonEnergy.US, email us at info@avalonenergy.us, or call us at 888-484-8096. Please feel free to share…

Read More

Natural Gas and Electricity Are Parting Ways – Part 2

In our last article, Natural Gas and Electricity Are Parting Ways – Part 1, we explored the weakening correlation between wholesale natural gas prices and electricity prices in the Mid-Atlantic. While natural gas prices have fallen dramatically over the past seven years, and electricity prices have fallen as well, electricity prices have not fallen as…

Read More

Natural Gas and Electricity Are Parting Ways – Part 1

In recent articles, we have explored the dramatic decline in natural gas prices over the past seven years. See These Are Days To Remember and10,000 Maniacs Were Right. In the US Mid-Atlantic, natural gas and electricity prices have, over time, tended to move together. While there has by no means been a perfect correlation between…

Read More

10,000 Maniacs Were Right

The dramatic decline of natural gas prices was the focus of our last article (These Are Days to Remember). As we noted then, in real dollars, natural gas prices were near all-time lows. Since then, natural gas prices have continued to fall. Yesterday the November futures contract settled at $2.033 per mmBtu. The last time…

Read More

These Are Days To Remember

Natural gas prices are really, really low in the wholesale market. The graph above shows daily natural gas prices traded at the Henry Hub, in dollars per million British thermal units ($/mmBtu), from January 1997 to today. Prices on the graph are in nominal dollars, not adjusted for inflation. Natural gas prices have exhibited a…

Read More

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…

Read More

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.…

Read More

Are Crude Oil and Natural Gas Reconciling?

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…

Read More

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.…

Read More