Down, Down, Down: Energy Prices in the 2010s

By Evelyn Teel A previous blog post highlighted the shale gas revolution as arguably the most significant energy-related development of the previous decade (you can find the post here: https://avalonenergy.us/2019/12/shale-we-review-the-2010s/). In this article, we will discuss another trend that was significant in the 2010s – declining energy prices. Natural Gas Prices  One major effect of…

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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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Market Update, November 6, 2013

For buyers, pricing in the wholesale natural gas market is attractive. The graph below shows natural gas prices over the past ten years.  While we are not at the absolute low, we are near the bottom. The next graph shows the 24 month forward curve for natural gas.  The line is upward sloping, meaning the…

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Time To Draw Down The Strategic Petroleum Reserve?

What is the Strategic Petroleum Reserve? The Strategic Petroleum Reserve consists of a number of large underground caverns created in naturally occurring salt diapirs (domes) along the Gulf Coast of the United States.  The caverns were created by drilling wells into the salt domes, dissolving the salt with water, pumping the salt water solution to…

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