Natural Gas
“Energy Prices Always Go Up”
There is a common perception that energy prices have been, and continue to be, on a one way path upwards. Is this the case? No. The graph above provides a historical view of natural gas prices. Plotted are the monthly average spot prices of natural gas at Henry Hub (a trading hub in Southern Louisiana)…
Read MoreEarthquake!
Wholesale electricity prices are volatile. Because electricity cannot be stored in any meaningful quantity, electricity load (demand) and supply must be matched in real-time. Matching load and demand is the challenging job of grid operators. To give you an idea of how volatile prices can be, take a look at the graph below (source: pjm.com).…
Read MoreTrade Association Buying Groups – Who Benefits?
Do businesses benefit by purchasing energy through trade association buying groups? In many cases “no.” How can that be? First, some background. The term “load profile” refers to the variation of an electricity user’s electrical load versus time. Load profiles vary by customer categories (residential, commercial and industrial) and by individual customer within those categories.…
Read MoreIs the Shale Gas Revolution for Real?
Some have described the proliferation of shale gas plays as a “quiet revolution.” But, the revolution is not so quiet. Stories now appear regularly on the front page of the Philadelphia Inquirer, the New York Times, and many other newspapers far from the oil patch. What are the facts? US natural gas production is higher…
Read MoreFixed Price versus Variable Price Energy Supply Contracts
When purchasing energy, there is a price/risk continuum between fixed price contracts and variable price contracts. Fixed price contracts allow you to minimize your exposure to price risk by transferring this risk to a supplier. With a variable price contract, you are accepting the risk associated with changes in the market price of electricity. This…
Read MoreIs There a Shortage of Energy?
I was recently asked to review a draft of a book in which there was reference to “…rising energy demand, global climate change and limited energy supplies…” Are energy supplies limited? The short answer is “no.” There is no shortage of energy in the universe and energy supplies are not limited. This is more than…
Read MoreWelcome
Welcome to Avalon’s energy blog. Get the latest news and information in the energy sector from an expert in the industry. Our blog will discuss ways to save, new technologies and the latest in legislation for both commercial and residential.
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