Electricity Markets
Markets moved up dramatically this week in response to cold weather.
Markets have responded to sustained cold. Pricing in New England has responded with large increases over the past week.
Natural Gas Markets
Short term pricing has increased and become more volatile because of sustained cold. Outward years still look optimal.
Futures as of 11/23/2022 versus previous week:
| Current | ||
| Dec-22 | $6.779 | $0.491 |
| Jan-23 | $7.409 | $0.734 |
| Feb-23 | $7.170 | $0.746 |
| Mar-23 | $6.314 | $0.689 |
| Apr-23 | $5.064 | $0.174 |
| May-23 | $4.984 | $0.203 |
Natural Gas Inventory
Working gas in storage was 3,564 BCF as of Friday, November 18th. According to EIA estimates this represents a net decrease of 80 Bcf from the previous week.
The Baker Hughes exploration gas count decreased by 2 rigs for a total of 155 this week. There are 102 additional rigs in operation than at this time one year ago.
Weather Update
Temperatures will be below average across the West and Midwest. Temperatures will be above average across the Southeast and the East Coast.
Hurricane Watch: Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook: Click here to view La Nina and El Nino status.
News : Several North American grids may lack power in extreme winter conditions: NERC- Much of the North American bulk power system remains at risk of “insufficient electricity supplies during peak winter conditions,” especially in Texas, the Midwest, New England and Alberta, the North American Electric Reliability Corp. reported Nov. 17.
News : Freeport LNG expects initial production in mid-December, subject to regulatory approval– Freeport LNG expects initial production at the US liquefaction facility to resume in mid-December, subject to regulatory approval, the operator said in astatement Nov. 18.
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