Effectively Manage your Energy Needs
Transparent Energy has provided this synopsis of the attached report for you.
- Natural Gas Fundamentals remain bearish in the short term due to high storage, moderate weather, and strong domestic production. We have lots of supply!
- Winter weather will be the primary driving factor for prices in the near-to-immediate term. Even short periods of extreme cold have proven to send electric and natural gas prices substantially higher. Any weather can drive the market higher, so beware!
- While U.S. Dry Natural Gas production continues to establish new records, the demand for natural gas in the electric generation sector is also approaching all-time highs. Again, we have lots of supply but demand is high.
- The United States is a huge producer of NG and exports to Europe and Asia are growing because export prices are 5-6X what it sells for domestically. Several new LNG export terminals are under construction and export capacity will increase dramatically in the coming years. US exports a lot of natural gas or liquified natural gas which can drive prices higher.
- Calendar natural gas strips out to 2035 are all trading below $4 per MMBtu. Market prices still remain low.
- Longer term agreements should be considered as part of your risk management strategy. At a minimum, partial hedges should be evaluated out to 2027 and beyond. Great time to buy; go out as long as you can but do something now!
Need clarification or interested in learning how to take advantage of Transparent Energy’s procurement services to help you better manage your energy contracts and realize potential savings? Please reach out to Greg Angelillo at gangelillo@transparentedge.com. Greg is NYSHFA | NYSCAL’s dedicated support person for our energy procurement program.
NYSHFA | NYSCAL CONTACT:
Laurie Robertson
Director of Administration
lrobertson@nyshfa.org
518-821-4796
