Archive for the ‘Fuel mix’ Category

Parting Ways 1

Nov 16

Natural Gas and Electricity Are Parting Ways – Part 1 by Jim McDonnell Avalon Energy originally published on November 9, 2015 ·   In recent articles, Avalon Energy has explored the dramatic decline in natural gas prices over the past seven years.  See These Are Days To Remember and 10,000 Maniacs Were Right. In the US Mid-Atlantic, natural gas […]

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Guest Post: Avalon Energy Services – “Are Crude Oil and Natural Gas Reconciling?” 1

Dec 11

Our friends at Avalon Energy Services wrote a thoughtful piece this week on the implications of recent crude oil declines. Please take a look at their thoughtful piece. Jim McDonnell explores whether the declines in crude oil and natural gas prices might signal a convergence of the cost of the two fuels. As Jim writes: […]

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Natural gas storage season was a record breaker

If you don’t like electricity prices, wait 5 days 1

Dec 3

Volatility in electricity markets in the Northeast has reached extremes. Take this example: Between Friday and this morning, on peak prices for January 2015 dropped $11.00/MWh. That’s dramatic. To paraphrase Yogi Berra, if you don’t like energy prices, wait 5 days. What’s happening? Weather. And perhaps some trading opportunities. As this EIA graphic so brilliantly […]

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Power Market Update: October 1, 2014 1

Oct 1

Market Summary Power prices have increased since last week. Winter forward prices (January, February, March 2015) are driving the entire forward strip higher. All other (non-Winter) months are at or near historical lows. News on gas prices is mixed since last week. Natural gas markets are up today after reports of cooler weather heading into […]

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Energy Market News: May 2, 2014 1

May 2

Here’s a round up of what was happening this week in energy markets: First, an interview with Commissioner Philip Moeller on the status of Energy Regulation at FERC; Second, a look at political discord swirling around the new capacity zone that was put in place in New York State; and finally an effort from the Governor […]

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Current State of Electricity Markets 1

Jan 22

Gas prices are up higher than they’ve ever been. Historic highs. That’s what we’re talking about here. Fuel cost spikes like these cause a great deal of volatility in gas and power markets. There has been an impact on both the forward and day-ahead markets. Here’s a story that gives you a sense for the […]

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Energy Markets & Recent Pricing 1

Jul 2

What’s Happening with Power Markets Now? June saw a steady decline in forward electricity prices (see 12 month strip, August 2013-July 2014, below). While this is slightly a-typical, now is not a bad time to consider making an electricity purchase even if your contract is not up for renewal quite yet. If we see an […]

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Electricity prices are up.. don’t buy today 1

Nov 15

Northeast wholesale prices have increased over the past two days due to natural gas price increases. According to the Energy Information Administration, natural gas prices have increased due to colder than normal weather, lower LNG imports, and pipeline constraints in the Northeast. We would recommend not buying today. There is no need for panic-driven decision […]

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Re-Post From New Scientist: American Dream of Oil Independence on Horizon 1

Nov 13

As reported by Andy Coghlan in New Scientist article “American dream of oil independence on horizon”, a recent report from the International Energy Agency states that the US may achieve oil independence by… 2035. While it isn’t exactly around the corner, the fact that such a feat is in sight is remarkable. The article states […]

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Natural Gas: Background 1

Aug 3

What drives natural gas prices? Why do we care? Well, for one thing, because it’s relevant for understanding the market for electricity. Recent estimates are that about 25% of US electricity usage is met by burning natural gas in gas-fired electricity plants. But also there’s been some buzz around natural gas recently. You may have […]

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