July 15, 2012
NYMEX Updates: Friday (7/13/12)
August NYMEX settled: $2.874
The NYMEX one-year strip $3.35, 2-year strip 3.65, 3-year strip $3.85
Calendar 2013-$3.70, 2014-$4.10, 2015 $4.25
Strip prices are indicative and have wide bid/ask
Last 12-month average NYMEX: $3.043
Last 3-year average: $6.05
Crude oil: $87.10
#2 fuel oil, $2.782
Spot pricing for Natural Gas is till trading at low levels even after hot weather in the Northeast caused a temporary gain last week. The Henry Hub rose to $2.04 per MMBtu July 6th, therafter it fell back to $2.72 per MMBtu.
Gulf of Mexico production resumed after being shut down by Hurricane Debby but U S production dropped another 0.3 Bcf/d to 63.8 Bcf/d. Canadian imports rose particularly to the Northeast and per BENTEK Energy, LLC power burn in the Pacific Northwest rose more than 150 percent. Canadian gas will make up shortfalls but drilling activity and daily production rates in Canada have been on the decline due to shale gas glutting the market.
The working Natural Gas storage rose to 3.135 Bcf as of Friday, July 6 according to the U S Energy Information Administration Weekly Natural Gas Storage Report. This is 548 Bcf less than last year’s inventory for the corresponding storage week. This is due to the increased demand for power generation the daily refill rate being lower than last year.
2013 production is expected to be .6 Bcf/d below 2012. Meanwhile, gas demand is growing in the power, industrial and transportation sectors. Credit Suisse said last week that they expect gas prices to return to $4/Dt by the end of 2013.
Pease feel free to give me a call to discuss any questions you may have about your specific energy plan.
**This analysis contained herein is based upon information Energy-Tel, LLC reasonably believes to be accurate. However, they do not guarantee the accuracy of the analysis.**
THE LAST WORD: Effort only fully releases its reward after a person refuses to quit.