Prices
Propane and Natural Gas – Birds of a Feather Not Flying Together
Propane is a versatile source of energy common in rural areas that are “beyond the main” of utility natural gas service. It is often used for home space and water heating and cooking, as well as for agricultural uses such as crop drying, irrigation pump fueling, space heating in green houses, pig and poultry brooding,…
Read MoreNatural Gas Market Update, June 2018
Natural gas prices remain low and below their declining 21-year trend. See graph below. The prices presented here are for delivery at the Henry Hub in Southern Louisiana. Natural gas prices in other producing areas of the US, such as Northeastern Pennsylvania, the Permian Basin, and the Williston Basin, are significantly lower. The prices here…
Read MoreBalancing Congestion
The Federal Energy Regulatory Commission approved a change in PJM’s (the Mid-Atlantic grid operator) tariff, allowing them to shift what are called “balancing congestion” costs to load serving entities. FERC approved PJM’s tariff revision with an effective date of June 1. Suppliers have indicated that they intend to pass through these charges. Suppliers include a…
Read MoreIn 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 [email protected], or call us at 888-484-8096. Please feel free to share…
Read MorePeak Oil – A Dramatic Turn of Events
In our May 20, 2015 article, we wrote that “Concerns and worry about Peak Oil are overstated and irrelevant.” The article concluded, “With crude oil supplies increasing and the demand for crude oil slowing, and likely to continue to slow more, demand for crude oil will peak long before dwindling supplies of crude oil become…
Read MoreSeparate Paths – Part 2
By Ana Rasmussen, Intern Our last blog post Separate Paths – Part 1looked at how electricity distribution costs have been rising since 2008 and many of our readers have had questions about just why this is happening. In order to explore this, and to try to get some answers, I dove in and analyzed seven…
Read MoreSeparate Paths – Part 1
By Ana Rasmussen, Intern Since the shale boom began in earnest during 2008, natural gas prices in the US wholesale market have fallen dramatically. Prices have hovered within the 2 to 6 dollar per million Btu (mmBtu) range over the last few years, with the prompt month NYMEX natural gas contract trading at a remarkably…
Read MoreNatural 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 MoreNatural 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 More10,000 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…
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