News & Events

Natural Gas Extends Slide, Approaches Bear Market Territory

December 5th, 2014

Natural gas futures tumbled to a new one-month low on Thursday after U.S. data showed domestic demand was about half of what was expected last week and as weather forecasts dampened the outlook for gas-fired heating demand.

Natural gas for January delivery settled down 15.6 cents, or 4.1%, at $3.649 a million British thermal units, the lowest since Oct. 28. on the New York Mercantile Exchange. It was the sixth straight losing session for the market, with prices now approaching bear market territory, defined as a fall of 20% or more from a recent peak. Prices are down nearly 19% from $4.489 a million Btus reached on Nov. 20.

The surging volatility in the natural gas market has closely followed the extreme weather pattern in the U.S. in recent months, with a colder-than-average November followed by projections for a warmer-than-average December. At this rate, giving surging domestic gas production and weak demand as the market enters a period of normally peak usage, the U.S. could erase its supply deficit within weeks.

“This weather is unusual,” said Teri Viswanath, natural gas strategist at BNP Paribas in New York. “As cold as it was in November, it’s as mild or warm in December.”

In weekly data reported by the U.S. Energy Information Administration, domestic natural gas inventories fell by 22 billion cubic feet in the week ended Nov. 28, compared with an expected decline of 43 bcf, according to the average estimate of analysts surveyed by The Wall Street Journal. Total inventories now stand at 3.4 trillion cubic feet, 9.8% below the five-year average. Last winter’s severe cold drained stockpiles to an 11-year low.

Heating demand doesn’t look set to recover soon. New forecasts called for a series of mostly above-average temperatures over most of the U.S. in the next two weeks, with a huge swath of much-above-average warmth over the Midwest as late as Dec. 18—normally one of the coldest regions of the country and a strong driver of gas-fired heating demand.

“Additional (price) declines are certainly possible should the current mild temperatures views extend through the upcoming weekend,” research consultancy Ritterbusch & Associates said in a note.

 

By

Weekly Natural Gas Storage Report

September 11th, 2014

U.S. natural-gas inventories rose 92 billion cubic feet on the week
ended Sept. 5, the Energy Information Administration said Thursday. That
contrasted with expectations of an increase around 82 bcf and 85 bcf, according
to polls by Thomson Reuters and Bloomberg News. The increase was likely to
pressure natural-gas futures prices, because it not only topped market
expectations but also was 31 bcf more than the five-year average increase for
the week, said Tim Evans, an analyst with Citi Futures. “As it’s unclear
how much demand may have been lost due to the Labor Day holiday, it’s hard to
know how much the build represents a possible increase in underlying supply
that would carry over into future flows,” he added. Natural gas for
October delivery NGV14, -3.41%declined 12
cents, or 3.2%, to $3.83 per million British thermal units on the New York
Mercantile Exchange.

Working gas in storage was 2,801 Bcf as of Friday, September 5, 2014, according to EIA estimates. This represents a net increase of 92 Bcf from the previous week. Stocks were 443 Bcf less than last year at this time and 463 Bcf below the 5-year average of 3,264 Bcf. In the East Region, stocks were 215 Bcf below the 5-year average following net injections of 60 Bcf. Stocks in the Producing Region were 211 Bcf below the 5-year average of 1,052 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 38 Bcf below the 5-year average after a net addition of 12 Bcf. At 2,801 Bcf, total working gas is below the 5-year historical range.

Market Commentary

August 13th, 2014
ERCOT Cash – more of the same – normal temps, built for more…
PJM Cash – a story of the Led Zeppelin vs. Poison – 70s in the West and 80s in the East – flows moving towards the Glam Rock in Baltimore.
ERCOT Forwards – lots of quoting across many parts of the curve – but only bits and pieces traded – Cals slightly up 11.57, 11.61, and 11.62 – Cal 15, 16, 17 respectively.
PJM Forwards – lower on …demand I guess and lack of any fearful events…
NG – lower today on little news – I guess demand doesn’t appear to be AS strong next week – whatever. I think the $4.00 thing weighed down on the bulls overnight – AND!!!! Tomorrow is BDOW (Best Day of Week).
EIA DAY – expected mid 80s (like when Bryan Adams was popular), Last year Beach Boys – 65 Bcf build. 5 year average – Big Band and Swing, 47Bcf.
CL – Higher today. Up on a storage build, huh? Profit taking?
Economy and Stocks – up today on no new geo-politic tensions, United Airlines fuel costs being lower and flat retail sales – really up on nothing. The headline on banks pulling back on “REPO” (repurchase agreements) loans isn’t warming to me….
BITCOIN – $537 – ouch down 50 smackers overnight – apparently Consumer Financial Protection Bureau made new warnings about the digital currency – according to cnbc.com
NG – $3.815
Crude – $97.34
SP500 – 1946.72
US 10-Yr – 2.444
Gold – 1313.70
**near market close

Market Commentary

August 7th, 2014

ERCOT Cash – HIGH HOPES
TODAY – traders lifted prices to $125 on tight capacity concerns out of the
gates. Only to crater to the mid $40s by the midafternoon. Load trajectory
flatten and fears dismissed and prices weren’t materializing – yours!!!

PJM Cash – stronger AD pricing across the ISO today – as flows moved south
central within the ISO…largely tame today.

ERCOT Forwards – Summers soared earlier in the day as cash hopes were high –
but as the cash failed offers came in…heat rates higher but mostly on summer
strength.

PJM – ho hmm

NG – 82 Bcf injection – BULLISH number BEARISH price action – taking NG over
$4.00 requirements a larger fundamental commitment which is not supported by
existing S/D balance and weather outlook. Down on the day.

CL – up on Iraq fears – the militant group Islamic State has advanced toward
the Kurdish region of Iraq- which is oil producing…

Economy and Stocks – lower on fears of everything – Ukraine and Iraq primarily.

BITCOIN – $583

NG – $3.876

Crude – $97.63

SP500 – 1909.57

US 10-Yr – 2.414

Gold – 1314.50

**near market close

Giving Back – Local Businesses Help West Houston Community Center Save on Summer Energy Bills

June 25th, 2014

With high temperatures coming, a state-of-the-art energy management system significantly reduces energy costs and provides WHCC with more funds to focus on what really matters – the community

 

HOUSTON – June 25, 2014 – The hot Texas summer is fast approaching and for the West Houston Community Center that means higher energy costs for air conditioning and an increased strain on its budget.

 

The West Houston Community Center (WHCC) is a nonprofit organization aimed at providing quality facilities that support the community. The center hosts Alcoholics Anonymous meetings, Palmer Drug Abuse Programs (PDAP) for young and older youth, parent/child and multi-family programming, domestic abuse group counseling and Cocaine Anonymous.

 

To provide a comfortable environment for all of these programs, the center has historically seen a significant spike in the electricity bills during the summer months.  But this summer will be vastly different thanks to lower energy rates from Houston-based Entelrgy and an easy to use, energy management solution donated by EnTouch Controls.

 

Because its programs are hosted at various times and in multiple rooms throughout the WHCC facility, HVAC energy costs have become a significant expense for the organization.  One such program is the Family Point Resources, which focuses on programs that enrich the lives of low-income neighborhood children and their families. During the summer they conduct a variety of summer camps at WHCC including dance, art, drama, reading and sports. The camps greatly increase building traffic and are at all times of the day.

 

Before implementing EnTouch’s web-based energy management solution, WHCC guests were changing temperature settings themselves, or if they did not have access in a given room, they’d call the facility manager to come out to change the settings. The major issue was that when temperature changes were made in the evening, they’d be forgotten, leaving the air conditioning to run throughout the night when the facility was closed.

 

“Energy is our number one non-personnel expense, but there are simply too many programs and too many different groups within our facility for me to ensure temperatures are properly regulated,” Jorge Quinones, executive director, West Houston Community Center. “EnTouch’s solution completely simplified this process and we expect to see significant energy savings, which will free up our budget to focus on what’s most important to us – the community.”

 

Entelrgy adopted WHCC into its Community In Action Program, in which the company provides lower-priced energy costs and makes  donations to local community organizations and non-profits.  In the case of WHCC, Entelrgy professionally renegotiated their energy contract and reduced their annual energy costs by just over $3,000. And on May 8th 2014Entelrgy made an additional charitable contribution of $3,868 to WHCC.

 

Add to that the donation of the EnTouch Pro Thermostats and WHCC will be able to reduce its energy costs even more by reducing its energy usage.  With the EnTouch Pro thermostats in place, guests can text the facility manager for changes and he can manage temperature changes remotely from anywhere with his mobile phone. Additionally, security functionality of the EnTouch Pro allows the facility manager to select a desired temperature and ensure that onsite changes do not exceed +/- 3 degrees of the approved setting. If changes are made, the thermostat will automatically revert back to vacant set points each night.

 

“The West Houston Community Center is a valued resource providing essential wellness services to its community and it is a shame that so much of its funding was consumed by unnecessary energy costs,” said James Walton, VP of Business Development of EnTouch Controls. “We’re happy to provide the center with the EnTouch Pro thermostats and look forward to continuing our work with them to ensure maximum energy savings.”

 

“The goal of our Community In Action program in 2014 is to give $100,000 back to local organizations like the WHCC,” said F. Michael Lewis, Vice President of Operations for Entelrgy. “This is EnTouch’s first time teaming up with our Community In Action program, but the combination of our negotiated low rates and energy management is a good one for making the maximum impact on these organizations.”

 

For more information about how Entelrgy can help your community or business, please visit our website www.EnergyCompete.com or call us at 866-7ENERGY (866-736-3749)

 

For more information on EnTouch Pro, visit http://entouchcontrols.com/products-services/entouch-promotion-sensing-thermostat/.

 

About EnTouch Controls

Based in Richardson, Texas, EnTouch Controls is an industry-leading provider of data-driven energy management solutions (EMS). EnTouch Controls’ easy-to-use, web-based solution is designed to leverage real-time analytics to reduce energy consumption and maximize energy savings, to provide visibility across key assets while improving operational efficiency and enhancing overall customer comfort. EnTouch 360™ managed services takes traditional EMS to a higher level by providing dedicated support in managing energy usage and evaluating system issues. EnTouch Controls provides installation, professional services, technical support, energy usage monitoring, overall system performance and manages maintenance issues. Connect with EnTouch Controls on our websiteTwitter feedblog or email Tom Kay, Vice President Sales & Marketing at tom.kay@entouchcontrols.com.

 

Media Contact:

David Rodewald / Amber Hack

The David James Agency

805-494-9508

entouch@davidjamesagency.com

 

About Entelrgy

 

Based in the “Energy Capitol of the World”, Houston, Texas, Entelrgy LLC operates as an energy consultant and broker for commercial and industrial customers.  We handle national energy procurement and management for a variety of clients. While offering consulting not only on price and cost reduction, but also utility bill management, HVAC controls, utility construction, engineering services, demand response and lighting retrofits.

 

Media Contact

Erin Cutbirth

866-736-3749 x103

Erin.Cutbirth@Entelrgy.com

Market Commentary 5-27-2014

May 27th, 2014

Power prices for June across the major term trading locations continued to

show varied moves during the week ended May 23, as traders looked to continuing

losses for front-month natural gas futures alongside calls for widespread

warming in the weeks ahead that should boost demand for cooling.

 

The front-month gas contract today continued 6 cents higher to $4.46/MMBtu.

 

Short-covering leading into the long Memorial Day holiday weekend allowed

June natural gas futures to resume the upside Friday, May 23, with a 4.6-cent

advance to a finish at $4.405/MMBtu, even as fundamentals remain bearish. The

front-month gas contract ultimately ended the report period down 6.5 cents from

the Monday settle, for its fifth-straight week of decline.

Across the South, the value of June power parcels was pressured by weaker

natural gas futures, though the downside was limited by outlooks for warming

and robust cooling load in the weeks ahead. Power prices for June delivery at

ERCOT North eased 25 cents on the week, from $55.31 at the start of the review

period to $55.06 at the end of the review week.

NG 5-27

05/23/2014 Power Report: Dailies could advance ahead of Memorial

May 23rd, 2014

 

After easing a bit on Thursday, power prices at the daily markets could end

the workweek with gains Friday, May 23, amid generally stronger demand outlooks

through the start of the holiday-shortened workweek May 27 and a renewed upside

in natural gas futures trading.

 

Both power and gas markets are closed Monday, May 26, for Memorial Day.

 

At last glance, June natural gas futures were trading 2.3 cents higher to

near $4.382/MMBtu after tanking 11.4 cents in the prior session following the

report of a larger-than-expected and above-average build of 106 Bcf for the

week ended May 16. However, spot markets could favor the downside Friday, as

prices reconcile prior-day losses in futures and face a low-demand product

offering that will cover the three-day weekend.

 

In the South, demand in ERCOT is poised to reach a high at 48,570 MW on

Friday and 47,130 MW on May 26 before rebounding to 49,423 MW on May 27.

 

In the South, price action for June power slumped across the board to above

$57 at ERCOT Houston and to either side of $55 across the other ERCOT markets,

while power values for July were quoted in the low $70s overall.

Energy Research Council Report Explains How Record-Breaking Demand Affects Electricity Cost

May 23rd, 2014

Salisbury, MD, May  2014—Record-breaking levels of energy demand and consumption were recorded in January 2014. On January 7, PJM—a regional transmission organization (RTO) that coordinates the movement of electricity in 13 states—recorded its highest winter peak ever—141,396 megawatts. Eight of the 10 highest winter demand levels for electricity ever recorded by PJM occurred in January 2014. PJM called an emergency load response event on January 7, and again on January 23. In contrast, PJM called only one emergency load response event in all of 2013, and that event occurred in September during extreme heat. Four other RTOs also reported record-breaking winter peak demand in January 2014. On January 6, 2014, temperatures in key consuming regions of the U.S. dropped to an average of -10 °F, with a wind chill of -33 °F. On January 7, 2014, record-breaking temperatures in the PJM territory dropped to 4 °F in Philadelphia, 10 °F in Richmond, and -16 °F in Chicago. During all of 2013, the average cost for PJM to ensure reliable power delivery was $53/MWh; in January 2014, the average cost was $150/MWh. Cold weather burdened all types of power generation, including gas, coal, and nuclear power plants. Some generators experienced extended run times, resulting in unplanned shutdowns. In the Electricity Reliability Council of Texas (ERCOT) territory, two power plants tripped offline on January 6, and wholesale prices reached $5,000/megawatt hour (MWh) for the first time ever. Average electricity prices were greater than $1,300/MWh in ERCOT territory, which is 40 times higher than average. The Energy Research Council’s (ERC’s) report, “Polar vortex effect on electricity prices (click here),” discusses how peak demand led to increased ancillary costs, and describes how different “change-in-law” provisions are impacting customer electricity bills – See more at: http://www.retailenergyx.com/sy.cfm/295/Release-Energy-Research-Council-Report-Explains-How-Record-Breaking-Demand-Affects-Electricity-Cost#sthash.UpNtMV6M.dpuf

 

The previous post was a news release from the Energy Research Council, which is composed of several retail suppliers and brokers. RetailEnergyX.com disclaims any responsibility for the content of the release and makes no averment as to its accuracy

Natural Gas Bets Drop to Five-Month Low on U.S. Supply

May 19th, 2014

Faster-than-expected gains in U.S. natural-gas inventories are easing concern that a shortage is looming next winter, spurring speculators to cut bullish bets.

Money managers’ net-long position fell 9.1 percent in the week ended May 13 to the lowest level since December, the U.S. Commodity Futures Trading Commission said. Bearish wagers are the highest in more than four months.

Gas futures fell 9.2 percent in the period as stockpile gains topped analysts’ forecasts for a third week. Production from shale deposits in the U.S. Northeast and Midwest climbed to a record 16.1 billion cubic feet a day in the week ended May 9, Credit Suisse Group AG said in a report May 15.

“We’re on the path to a more comfortable supply situation by the end of the summer,” Tom Saal, senior vice president of energy trading at FCStone Latin America LLC in Miami, said by phone on May 16. “That’s giving the bears a little bit of ammunition.”

Natural gas slid 44.1 cents to $4.358 per million British thermal units on the New York Mercantile Exchange in the week ended May 13. Prices fell to $4.289 on May 15, a six-week low, and rose 1.3 percent today to settle at $4.47 in New York.

The Energy Information Administration said inventories rose 74 billion cubic feet in the week ended May 2. Analysts predicted an increase of 70 billion. Supplies climbed by 105 billion the following week, narrowing the deficit to the five-year average to the least since Feb. 28.

 

By Christine Buurma

May 15, 2014

May 16th, 2014

ERCOT Cash – printing $48 bucks on the super peak – whoop! Broke out from the
$20s prints. BUT load isn’t impressive – under 39k – so pricing will be
contained…Temps a creepin’ though. DAM cleared $34.65 and 34.19 on and offpeak.

PJM short term looks bearish as temps fall back into normal – next day Fin
trading $43 bucks vs. $75 bucks bal day…

ERCOT Forwards – Basis day – trading H/N basis on the Cal 15 for $1.70 – pretty
much the highlight on the day. And the Summer 2014 was offered lower than 20
heat rate, UNCHG on most everything else…Sum 14 19.75, Ca1 15 – 12.21 and Cal
16 – 12.19.

PJM Forwards – Bal Year slightly offered better and the backs were steady to
lower in PJM and NiHub – AD Hub slightly up relatively speaking. PJM Cal 15
$54.25 and Cal 16 $52.10

NG – EIA number came in 105 – and posted a down revision to last week’s
injection by 8 Bcf. NG settled up today

CL – lower on the day – according to Dow Jones Energy News, crude basically
followed equities on weak US and Global economic signals (more on this below) and
near record stockpiles of the black gold – YOURS for now.

Economy and Such – OK – welcome to the psychopath world of the “new normal”!!!
Last week – Peaches and Cream, this week the sky is falling and drag Global
Equities with it…YELLEN for help (ha-ha, crackin’ myself up). Janet Yellen
is the new FED president –  Hope the FED does nothing – otherwise it
will prove that the markets, and probably the US economy, can’t broadly survive
without its fix of QE. Not a fan of QE, it’s distorting interest rates and
forcing capital mis-allocation. In my HUMBLE opinion.

Wal-mart’s profit forecasts and slow growth weighed on the markets, as well as
industrial output fell – the ‘ol one two punch…

What happened to bad news is good?? Could we be headed to the old normal?

BITCOIN – $438
NG – $4.469
Crude – $101.56*
SP500 – 1870.85
US 10-Yr – 2.49
Gold – 1296.60

**near market close