Energy4Business » Market Intelligence

The LNG Revolution

CNE Market Intel — Fri, 24 Feb 2012 17:34:22 +0000

Last month the EIA released a study focused on the long-term impact of increased domestic natural gas demand from LNG exports. This assessment is timelier than ever considering the Department of Energy now has a total of seven LNG export applications and several projects in progress. The two main reasons for this surge in project development is cheap domestic supply of natural gas relative to global markets and increasing global demand. The tragedy of the March 2011 Japanese earthquake and tsunami has forever altered global natural gas demand. Japan
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What Did The Largest Canadian Gas Producer Announce Today That Rallied NYMEX As Much As 16¢?

CNE Market Intel — Fri, 17 Feb 2012 19:58:43 +0000

Encana Corp, Canada’s largest natural gas producer and the third largest in North America behind Exxon Mobil and Chesapeake Energy, announced this morning that they were cutting production immediately by 250 mmcf/day and further reductions through reduced capital expenditures (capex) that will bring total volumes cut to 600mmcf/d or .6 Bcf/d. Encana was producing approximately 3.5 Bcf/d of gas production at the end of 2011. Encana joins Chesapeake and Conoco Phillips in announcing production cuts over the past several weeks as producers look to conserve cash and shift production away from “dry” (almost pure methane) gas to either oil
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Uncertain Markets & Forecasting Demand

CNE Market Intel — Thu, 16 Feb 2012 17:34:05 +0000

PJM is currently scheduled to retire more than 13,000 MWs of electricity generation between 2011 -2016. The retirement will generate greater scrutiny in order to maintain resource adequacy and stability. Resource adequacy will need to be determined by examining the annual resources available to handle peak load demand. These peak load periods mostly occur during the summer period from June through September. Along with
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A Look At Renewable Portfolio Standards

CNE Market Intel — Fri, 10 Feb 2012 19:48:47 +0000

Renewable Portfolio Standards or RPS are guidelines established by individual states to increase the amount of electricity generated from renewable sources. Renewable sources of electricity include wind, solar, geothermal, biomass and some types of hydro, but can also include landfill gas, municipal solid waste and tidal energy. The U.S. has always relied heavily on fossil fuels such as natural gas, coal and nuclear to generate the lion-share of its electricity. Those fuels are considered nonrenewable because they represent a finite resource that will ultimately become exhausted or will be too expensive or
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Potential for the Warmest Winter in 62 Years

CNE Market Intel — Fri, 03 Feb 2012 20:55:21 +0000

Lack of weather related demand this winter has driven the natural gas market toward 10-year lows and allowed inventory stockpile levels to reach all-time highs. Data from the Energy Information Administration (EIA) through the week ending January 27 reports that natural gas storage levels are at 2,966 Bcf, about 375 Bcf higher than the previous record high of 2,571 Bcf set in 2007 during the same week. In addition, the surplus in storage levels to last year and the five-year average continues to expand as a result of 12% lower population-weighted heating degree days (HDD) versus the 30-year average.
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NYMEX Natural Gas Has a Volatile Week: Production Cuts & Weather Forecasts

CNE Market Intel — Fri, 27 Jan 2012 21:58:11 +0000

On Jan. 23, the NYMEX February gas contract hit a 10-year low of $2.231/mmbtu, a price last seen in March 2002. Monday began what turned out to be a volatile week as Chesapeake Energy (CHK), the second largest gas producer, announced revisions to their 2012 outlook with an immediate cut in gas production and the possibility of further cuts. The announcement sent the NYMEX rallying 38 cents, or as much as 17% on Monday and further gains were made throughout the week. On Thursday, the rally stalled as weather forecasts for February continued to come in warmer than normal, returning

Will Natural Gas Storage Reach Full Capacity?

CNE Market Intel — Fri, 20 Jan 2012 15:27:45 +0000

Underground natural gas storage is at a record level and is poised to stay that way throughout the remainder of 2012. The glut of natural gas stems partly from the energy industry’s success with new and more efficient drilling techniques that has allowed production to skyrocket in areas known as shale formations. While production has been increasing, demand for natural gas has not been able to keep up, forcing producers to put their natural gas into storage. The mild winter across the country has added to the supply/demand imbalance. During the winter season, natural gas is withdrawn from storage to
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Natural Gas Prices Crumble Below $3 As Mild Weather Remains In Forecast

CNE Market Intel — Fri, 13 Jan 2012 22:25:13 +0000

After holding at the psychologically important level of $3/MMBtu for several days, the natural gas prices on the Nymex finally broke down this week after forecasts for mild weather led to fears that sustained heating demand would not arrive this winter. Prices for February delivery opened the week at $3/MMBtu but quickly declined through and are currently $2.65/MMBtu, a drop of 12% on the week and bringing prompt month prices to the lowest settlements seen since September 2009. Although some of the major weather forecasters to the energy industry have noted there will be bursts of winter weather over
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CSAPR Rule Postponed

CNE Market Intel — Thu, 05 Jan 2012 17:56:14 +0000

On December 30, 2011 the United States Court of Appeals for the D.C. Circuit issued a ruling to stay the controversial Cross-State Air Pollutions Rule (CSAPR), which was scheduled to take effect on January 1, 2012. The CSAPR regulation is designed to reduce power plant emissions in 27 states that the Environmental Protection Agency (EPA) claims contribute to harmful levels of Sulfur Dioxide (SO2) and Nitrogen Oxide (Nox), byproducts of the combustion process. The D.C. Circuit Court is scheduled to hold hearings as early as April 2012 to rule on full merits of case. In the meantime the EPA
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Implications of the Maximum Achievable Control Technology (MACT) Standard

CNE Market Intel — Thu, 22 Dec 2011 20:59:48 +0000

The EPA has revealed the final rules that would curb mercury and 84 other toxic chemicals from U.S. power plants. These rules would implement a provision of the Clean Air Act (CAA) known as the Maximum Achievable Control Technology (MACT) standard or Mercury and Air Toxics Standards (MATS). The EPA believes they will affect about 1,400 coal-fired units and oil-fired units at about 600 power plants that emit harmful pollutants. The EPA ruling has given coal and oil plants until 2016 to comply with the rules and finish their retrofits and/or closures. Critics of the MACT rule have argued
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