Onyx Power and Gas Consulting continues a weekly series providing the Short-Term Energy Outlook as of December 12, 2017. 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 and storage: The front month futures price of natural gas for delivery at Henry Hub settled at $2.92 per million British thermal units (MMBtu) on October 5, a decrease of 15 cents/MMBtu from September 1 (Figure 8). Futures prices declined in early September, largely because of reduced demand related to Hurricane Irma in Florida. Most electricity generation in Florida is natural gas-fired, and electricity generation in Florida on September 11 was 41% lower than the average of the first seven days of September. Injections of working natural gas into underground storage exceeded market expectations and historical averages for the first three weeks in September, which further contributed to lower prices. The Henry Hub natural gas spot price averaged $2.98/MMBtu in September, 8 cents/MMBtu higher than in August.
As rising natural gas production keeps pace with increasing consumption and demand for exports—particularly for liquefied natural gas (LNG)—EIA projects a balanced market from the last quarter of 2017 through 2018 (Figure 9). LNG export capacity is expected to increase, with LNG exports projected to exceed 3 billion cubic feet per day (Bcf/d) in 2018, 66% higher than in 2017. In addition, increased takeaway capacity out of the Marcellus/Utica shale plays as a result of several new projects (such as the Rover and Nexus Gas Transmission pipelines) will help increase production. EIA forecasts a year-over-year increase in dry natural gas production of 4.9 Bcf/d in 2018 to a record of 78.5 Bcf/d.
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!