Posts Tagged ‘Natural Gas’
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 MoreNatural 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 MoreAre 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 MoreNatural 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 MoreIn 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.…
Read More40% Reduction and Volatility Avoided
Our recent press release was picked up by numerous news outlets. Click here to see how it was reported by the Wall Street Journal’s Market Watch. In summary, Avalon Energy Services, LLC and our project partner, Ameresco, successfully completed a second natural gas procurement process for the District of Columbia Department of General Services (DC…
Read MoreMarket 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…
Read MoreReal Energy Cost Savings
Below are the results from a sampling of reverse auctions conducted for Avalon Energy Services’ customers, including customers of varying size, over the past few months. The first graph shows the customer’s annual energy costs before competitive bidding (blue line) and after contracts were executed on accepted bids (red line). Pre-auction annual energy costs ranged…
Read MoreBest Friends? – Natural Gas and Electricity Prices – An Update
By David White In a post from January 2012, the declining correlation between the price of natural gas and the price of electricity was explored (click here). At that time, the correlation between the two was declining as a result of the greater recovery in electricity prices relative to those of natural gas. The graphs…
Read MoreNatural Gas Prices – Time to Hit the Panic Button?
Over the last 25 days, the daily spot price of natural gas at the Henry Hub has risen more than 30%. This is a dramatic percentage increase over a short period of time. Is it time to hit the panic button? No. In short, the percentage increase is so large because the base has gotten…
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