Natural Gas Prices, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Natural Gas

Prices: The front-month natural gas futures contract for delivery at the Henry Hub settled at $2.87/million British thermal units (MMBtu) on March 7, 2019, an increase of 13 cents/MMBtu from February 1, 2019 (Figure 6). After showing much higher volatility since September, front-month futures prices in February traded within a range of 37 cents/MMBtu, the narrowest range for that month in 19 years. Colder-than-normal temperatures in the second half of the month contributed to larger inventory draws and rising prices. Storage withdrawals for the three weeks ending March 1 totaled 492 billion cubic feet (Bcf), which was 131 Bcf (36%) higher than the five-year average (2014–18). The higher-than-average withdrawals caused the inventory deficit to the five-year average to reach 464 Bcf (25%) on March 1.

Figure 6: U.S. natural gas fron-month futures prices and storage

Supply and demand: In the current STEO, EIA expects that total supply of natural gas will outpace demand through the end of 2020. EIA estimates that, in January 2019, the 12-month average of natural gas supply (production combined with imports) exceeded the 12-month average of demand (consumption combined with exports) for the first time since December 2017 (Figure 7). EIA forecasts that natural gas production will continue to increase, setting record highs in 2019 and in 2020. In addition, based on company reports, EIA expects new liquefied natural gas (LNG) capacity to come online this year and contribute to rising LNG exports. EIA expects the bulk of this capacity to start in the second quarter of 2019. As a result of the ongoing production growth, however, the 12-month moving average of supply is forecast to exceed demand through the forecast period. EIA forecasts that the higher supply growth will bring inventory levels back near five-year averages and help to keep price levels moderate. EIA forecasts Henry Hub spot prices to average $2.85/MMBtu in 2019, down by 30 cents/MMBtu from the 2018 average.

Figure 7: Natural gas production plus imports and consumption plus exports

Ethane-natural gas price spreads: The price spread between ethane and natural gas has remained greater than $1/MMBtu since mid-January. Ethane spot prices at the Mt. Belvieu, Texas, hydrocarbon gas liquids (HGL) trading hub were highly correlated with Henry Hub natural gas spot prices from about 2012 until mid-2017 (Figure 8). Since then, additions to petrochemical capacity in the form of new-build ethylene crackers as well as expansions and debottlenecking at existing facilities have increased demand for ethane and contributed to rising ethane prices. Growing exports, especially from the Morgan’s Point terminal on the Houston Ship Channel, have also put upward pressure on ethane prices since mid-2017. With higher ethane prices relative to natural gas, producers further inland are likely able to economically extract ethane from natural gas and cover transportation costs to the U.S. Gulf Coast.

Figure 8: Natural gas futures and ethane spot prices

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

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Petroleum Products – Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Petroleum Products

Gasoline prices: The New York Harbor front-month futures price of reformulated blendstock for oxygenate blending (RBOB, the petroleum component of gasoline used in many parts of the country) settled at $1.81 per gallon (gal) on March 7, 2019 (Figure 4), an increase of 37 cents/gal from February 1, 2019. The RBOB–Brent crack spread (the difference between the price of RBOB and the price of Brent crude oil) increased by 28 cents/gal to settle at 23 cents/gal during the same period. The RBOB–Brent crack spread increased 11 cents/gal in February before the contract changed to summer-grade gasoline on March 1, causing a typical seasonal increase in the crack spread.

Despite the increase in the RBOB–Brent crack spread in recent weeks, it remains significantly lower than average levels for this time of year. In February, U.S. gasoline consumption combined with exports remained near 2018 levels but have failed to reduce inventory levels significantly, likely because of high refinery production. STEO estimates that U.S. gasoline production from refineries (excluding ethanol net inputs and other blending component net inputs) averaged 7.8 million barrels per day (b/d) during January and February, which would be just lower than 2018’s all-time high if confirmed in EIA’s Petroleum Supply Monthly.

Figure 4: Historical RBOB front-month futures prices and crack spread

Ultra-low sulfur diesel prices: The ultra-low sulfur diesel (ULSD) front-month futures price for delivery in New York Harbor settled at $2.01/gal on March 7, 2019 (Figure 5), an increase of 10 cents/gal from February 1, 2019. The ULSD–Brent crack spread (the difference between the price of ULSD and the price of Brent crude oil) increased by 2 cents/gal to settle at 43 cents/gal during the same period.

The February average ULSD–Brent crack spread of 43 cents/gal was 9% higher than the five-year average (2014–18) for the month, continuing a trend of strong distillate refining margins. STEO estimates U.S. distillate consumption was 2% higher year-over-year in February, at 4.1 million b/d, likely because of colder weather compared with February 2018. This consumption level—along with four-week average exports of 1.2 million b/d for the week ending March 1—contributed to an estimated 3 million barrel draw in domestic distillate inventories from January to February. STEO estimates that distillate inventories ended February 3% lower than the five-year average level, but it forecasts year-end 2019 distillate inventories to be 146 million barrels, a 4% increase over year-end 2018.

Figure 5: Historical ULSD front-month futures prices and crack spread

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

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Crude Oil, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Crude Oil

Prices: The front-month futures price for Brent crude oil settled at $66.30 per barrel (b) on March 7, 2019, an increase of $3.55/b from February 1, 2019. The front-month futures price for West Texas Intermediate (WTI) crude oil for delivery at Cushing, Oklahoma, increased by $1.40/b during the same period, settling at $56.66/b on March 7 (Figure 1).

Figure 1: Crude oil front-month futures prices

Price increases in February coincided with EIA’s estimate that global liquid fuels inventories fell by 1.4 million barrels per day (b/d), the largest inventory withdrawal for any month since June 2017. Declining estimated crude oil production for February in both the Organization of the Petroleum Exporting Countries (OPEC) and the United States contributed to the draws, with U.S. petroleum inventories declining by 17.9 million barrels during the week ending February 22, the largest one-week decline since 2011. Despite high price volatility during the past year, Brent crude oil prices as of the first week of March were at essentially the same levels as in March 2018.

Notwithstanding the strong draw in February, EIA forecasts that global liquid fuels inventories will rise by 0.2 million b/d in 2019 and by 0.4 million b/d in 2020. The March STEO’s expected inventory builds in both years are lower than the forecast in last month’s STEO. The lower forecast inventory builds reflect lower expected crude oil production in both OPEC and the United States. Saudi Arabia cut crude oil production by more than expected in February, with production averaging 10 million b/d, and EIA assumes that joint OPEC/non-OPEC crude oil production cuts will remain in place through the end of 2019.

In addition, the U.S. active oil rig count reached a 10-month low of 834 rigs as of March 8, suggesting the rate of U.S. crude oil production growth could slow. Even though U.S. crude oil production is estimated to have remained near 11.9 million b/d for the past four months, EIA still forecasts U.S. crude oil production to increase by 1.3 million b/d in 2019 and by 0.7 million b/d in 2020.

OPEC and U.S. production levels, as well as the pace of global oil demand growth, present considerable uncertainty to oil market balances and price expectations. Based on the current forecast, however, EIA expects global inventory builds and rising OPEC spare capacity will limit significant upward oil price pressures in 2019 and in 2020.

Crude oil price spreads: Crude oil prices in the Permian region have increased since the beginning of the year. Two recent pipeline capacity additions reduced some of the takeaway constraints that developed in the second half of 2018. The WTI Midland crude oil price spreads with WTI Cushing and Magellan East Houston crude oil began narrowing in late January and settled at 15 cents/b and -$7.00/b on March 7, respectively (Figure 2). The Sunrise Expansion project added an estimated 120,000 b/d by early 2019, increasing takeaway capacity to Cushing. In addition, the Seminole-Rednatural gas liquids pipeline was repurposed to deliver crude oil from the Permian region to the U.S. Gulf Coast and began operating ahead of schedule, adding an estimated 200,000 b/d of takeaway capacity by April. Although EIA expects growing Permian production to face takeaway constraints again in the coming months, EIA expects that the recent capacity additions will prevent price spreads from widening back to the levels reached in the second and third quarters of 2018. EIA expects that new pipelines coming online in the third quarter of 2019 will alleviate the remaining takeaway constraints.

Figure 2: WTI Midland price spreads

The recent changes in price spreads also reveal the takeaway constraints out of Cushing, particularly during refinery maintenance season, a phenomenon which also occurred last October. Cushing stocks increased by 5 million barrels from the first week in February through March 1. In addition, Midwest gross refinery inputs fell to 3.5 million b/d for the four-week average ending March 1, which is lower than the five-year (2014–18) average level for those four weeks. The Brent–WTI Cushing spot price spread averaged $8.97/b in February, the second widest level for any month in the past five years. Although EIA expects the spread to narrow from current levels by the end of the year, EIA is revising its forecast for the Brent–WTI spread to remain at $9/b until June 2019, compared with $8/b in the February STEO.

Correlations: Typically, a strong positive correlation between equity prices and crude oil prices indicates demand-side factors, such as global economic growth, are contributing to crude oil price formation. Front-month Brent crude oil’s rolling 60-day correlation between the daily percentage changes of the S&P 500 index reached the highest levels since 2016 in early March (Figure 3). Correlations increased as prices for both equities and crude oil declined in the fourth quarter of 2018with the release of some economic data points that came in lower than market expectations and tightening global monetary policy. However, recently, the improvement in some economic data may have contributed to upward price pressure for both equities and crude oil. The delay of tariffs between the United States and China, as well as the potential for a trade agreement between the two countries, could contribute to increased economic activity. Furthermore, recent global central bank guidance has indicated looser monetary policy in 2019 compared with guidance from the fourth-quarter 2018, which could allow for easier financial conditions.

Figure 3: Rolling 60-day correlations with Brent crude oil prices

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

U.S. Economic Assumptions and Energy-Related Carbon Dioxide Emissions

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

U.S. Economic Assumptions and Energy-Related Carbon Dioxide Emissions

Recent Economic Indicators.

  • EIA used the February 2019 version of the IHS Markit macroeconomic model with EIA’s energy price forecasts as model inputs to develop the economic forecasts in STEO. Using the IHS Markit model, EIA forecasts real GDP to grow by 2.5% in 2019 and by 2.0% in 2020, compared with 2.9% growth in 2018.

Energy-Related Carbon Dioxide Emissions.

  • After rising by 2.9% in 2018, EIA forecasts that U.S. energy-related carbon dioxide (CO2) emissions will decline by 1.6% in 2019 and by 0.5% in 2020. The 2018 increase largely reflected increased weather-related natural gas use because of additional heating needs during a colder winter and for higher electric generation to support more summer cooling use than in 2017. EIA expects emissions to fall in 2019 and in 2020 because of forecasted temperatures that will return to near normal and natural gas and renewables making up a higher share of electricity generation. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, energy prices, and fuel mix.
U.S. carbon dioxide emissions growth

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Electricity, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Electricity

  • EIA expects the share of U.S. total utility-scale electricity generation from natural gas-fired power plants to rise from 35% in 2018 to 37% in 2019 and in 2020. EIA forecasts that the share of electricity generation from coal will average 25% in 2019 and 23% in 2020, down from 27% in 2018. The nuclear share of generation was 19% in 2018, and EIA forecasts that it will stay near that level in 2019 and in 2020. The generation share of hydropower is forecast to average slightly less than 7% of total generation in 2019 and in 2020, similar to 2018. Wind, solar, and other nonhydropower renewables together provided about 10% of electricity generation in 2018. EIA expects they will provide 11% in 2019 and 13% in 2020.
  • In 2019, EIA expects wind’s annual share of electricity generation will exceed hydropower’s share for the first time. EIA forecasts that wind generation will rise from 753,000 megawatt hours per day (MWh/d) in 2018 to 861,000 MWh/d in 2019 (a share of 8%). Wind generation is projected to rise to 963,000 MWh/d (a share of 9%) by 2020.
U.S. electricity consumption
U.S. electricity generation
U.S. renewable energy supply
U.S. electricity prices

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Coal, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Coal

  • EIA estimates that U.S. coal exports increased by 19 million short tons (MMst) (19%) in 2018, totaling 116 MMst. EIA expects declines in both steam coal and metallurgical coal (used in the steelmaking process) exports in 2019 and in 2020. Metallurgical coal exports are forecast to decline by 10 MMst (16%) in 2019 and by an additional 3 MMst (5%) in 2020 as the forecast’s global economic growth slows and decreases the demand for steel. Exports of steam coal, used primarily in electricity generation, are expected to decline by 5 MMst (10%) in 2019 and in 2020. Although forecast steam coal exports to non-traditional markets (North Africa, non-EU Europe, Central and South America) remain strong, exports to traditional markets, particularly the EU, will see demand for steam coal decline as countries initiate plans to limit/eliminate coal-fired electricity generation.
  • EIA expects the share of U.S. total utility-scale electricity generation from natural gas-fired power plants to rise from 35% in 2018 to 37% in 2019 and in 2020. EIA forecasts that the share of electricity generation from coal will average 25% in 2019 and 23% in 2020, down from 27% in 2018. The nuclear share of generation was 19% in 2018, and EIA forecasts that it will stay near that level in 2019 and in 2020. The generation share of hydropower is forecast to average slightly less than 7% of total generation in 2019 and in 2020, similar to 2018. Wind, solar, and other nonhydropower renewables together provided about 10% of electricity generation in 2018. EIA expects they will provide 11% in 2019 and 13% in 2020.
U.S. coal production
U.S. electric power sector coal stocks
U.S. coal consumption

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Natural Gas, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Natural Gas

  • The Henry Hub natural gas spot price averaged $2.69/million British thermal units (MMBtu) in February, down 42 cents/MMBtu from January. EIA expects strong growth in U.S. natural gas production to put downward pressure on prices in 2019. EIA expects Henry Hub natural gas spot prices will average $2.85/MMBtu in 2019, down 30 cents/MMBtu from 2018. NYMEX futures and options contract values for June 2019 delivery traded during the five-day period ending March 7, 2019, suggest a range of $2.40/MMBtu to $3.51/MMBtu encompasses the market expectation for June 2019 Henry Hub natural gas prices at the 95% confidence level.
  • EIA forecasts that dry natural gas production will average 90.7 billion cubic feet per day (Bcf/d) in 2019, up 7.4 Bcf/d from 2018. EIA expects natural gas production will continue to rise in 2020 to an average of 92.0 Bcf/d.
  • EIA expects natural gas inventories will end March at 1.2 trillion cubic feet (Tcf), which would be 14% lower than levels from a year earlier and 28% lower than the five-year (2014–18) average. EIA forecasts that natural gas storage injections will outpace the previous five-year average during the April-through-October injection season and that inventories will reach 3.6 Tcf at the end of October, which would be 12% higher than October 2018 levels and 2% below the five-year average.
U.S. natural gas consumption
U.S. marketed natural gas production
U.S. natural gas trade
U.S. working natural gas in storage
U.S. natural gas balance

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

U.S. Liquid Fuels, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

U.S. Liquid Fuels

  • Brent crude oil spot prices averaged $64 per barrel (b) in February, up $5/b from January 2019 and about $1/b lower than at the same time last year. EIA forecasts Brent spot prices will average $63/b in 2019 and $62/b in 2020, compared with an average of $71/b in 2018. EIA expects that West Texas Intermediate (WTI) crude oil prices will average $9/b lower than Brent prices in the first half of 2019 before the discount gradually falls to $4/b in the fourth quarter of 2019 and throughout 2020.
  • EIA estimates that U.S. crude oil production averaged 11.9 million barrels per day (b/d) in February, down slightly from the January average. EIA forecasts that U.S. crude oil production will average 12.3 million b/d in 2019 and 13.0 million b/d in 2020, with most of the growth coming from the Permian region of Texas and New Mexico.
  • Net imports of U.S. crude oil and petroleum products fell from an average of 3.8 million b/d in 2017 to an average of 2.3 million b/d in 2018. EIA forecasts that net imports will continue to fall to an average of 1.0 million b/d in 2019 and to an average net export level of 0.1 million b/d in 2020. In the fourth quarter of 2020, EIA forecasts that the United States will be a net exporter of crude oil and petroleum products by about 0.9 million b/d.
U.S. liquid fuels product supplied growth
U.S. Hydrocarbon gas liquids product supplied growth
U.S. crude oil production
U.S. liquid fuels production growth
U.S. commercial crude oil stocks
U.S. gasoline and distillate inventories

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Global Liquid Fuels, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Global liquid fuels

  • Brent crude oil spot prices averaged $64 per barrel (b) in February, up $5/b from January 2019 and about $1/b lower than at the same time last year. EIA forecasts Brent spot prices will average $63/b in 2019 and $62/b in 2020, compared with an average of $71/b in 2018. EIA expects that West Texas Intermediate (WTI) crude oil prices will average $9/b lower than Brent prices in the first half of 2019 before the discount gradually falls to $4/b in the fourth quarter of 2019 and throughout 2020.
  • EIA estimates that U.S. crude oil production averaged 11.9 million barrels per day (b/d) in February, down slightly from the January average. EIA forecasts that U.S. crude oil production will average 12.3 million b/d in 2019 and 13.0 million b/d in 2020, with most of the growth coming from the Permian region of Texas and New Mexico.
World liquid fuels production and consumption balance
World liquid fuels consumption growth
World liquid fuels consumption
World liquid fuels production and consumption balance
Estimated unplanned crude oil production among OPEC and non-OPEC producers
OPEC surplus crude oil production capacity
OECD commercial stocks of crude oil and other liquids (days of supply)

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Prices, Short-Term Energy Outlook

Onyx Power and Gas Consulting continues with its weekly series providing the Short-Term Energy Outlook as of March 12, 2019.  This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.

Prices

  • Brent crude oil spot prices averaged $64 per barrel (b) in February, up $5/b from January 2019 and about $1/b lower than at the same time last year. EIA forecasts Brent spot prices will average $63/b in 2019 and $62/b in 2020, compared with an average of $71/b in 2018. EIA expects that West Texas Intermediate (WTI) crude oil prices will average $9/b lower than Brent prices in the first half of 2019 before the discount gradually falls to $4/b in the fourth quarter of 2019 and throughout 2020.
  • The Henry Hub natural gas spot price averaged $2.69/million British thermal units (MMBtu) in February, down 42 cents/MMBtu from January. EIA expects strong growth in U.S. natural gas production to put downward pressure on prices in 2019. EIA expects Henry Hub natural gas spot prices will average $2.85/MMBtu in 2019, down 30 cents/MMBtu from 2018. NYMEX futures and options contract values for June 2019 delivery traded during the five-day period ending March 7, 2019, suggest a range of $2.40/MMBtu to $3.51/MMBtu encompasses the market expectation for June 2019 Henry Hub natural gas prices at the 95% confidence level.
West Texas Intermediate (WTI) crude oil price
U.S. gasoline and crude oil prices
U.S. diesel fuel and crude oil prices
Henry Hub natural gas price
U.S. natural gas prices
U.S. residential electricity price

The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!

Posted in Clean Energy, CO2, Community Improvement, Consulting, Crude Oil, Crude Oil Prices, Drilling, Electricity, Electricity Prices, Emmissions, Energy, Energy Consumption, Energy Deregulation, Energy Prices, Environment, Fuel, Fuels, Gas, Generation, Green Energy, Natural Gas, Natural Gas Prices, OECD, Oil, Press Releases, Services, Shale Gas | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment