www.patriotenergygroup.com | [email protected]| Phone: (800)343-4410 | Fax: (866)362-9440 WeeklyUpdate IEA Says U.S. Natural Gas Output to Accelerate Next Year Fuel Fix | June 20th, 2013 U.S. natural gas production will accelerate from 2014 through 2018 as higher prices spur drilling and expanded infrastructure allows more shale supplies to reach the market, according to the International Energy Agency. Gas output will reach 797 billion cubic meters by 2018, 17 percent higher than last year’s total of 681 billion, the IEA said in its Medium-Term Market Report, released today. “After stabilizing in 2013, gas output will rise strongly over the rest of the forecast period,” the Paris-based agency said. “As in the five previous years, shale gas continues to be the key driver behind this growth.” U.S. shale production increased sixfold to 265 billion cubic meters last year from 45 billion in 2007, the IEA said. More than 75 percent of the current shale output is coming from the Marcellus, Barnett, Fayetteville and Haynesville deposits, the agency said. Exxon Mobil Corp. (XOM) and Chesapeake Energy Corp. (CHK), the two largest gas producers in the U.S., have both been “radically shifting” their onshore drilling focus from gas deposits toward oil and other liquids, the IEA said. Output of the resulting associated gas has exceeded production from dry gas plays over the last two years, according to the report. Associated gas will account for 54 percent of U.S. gas production in 2014, up from 51 percent last year and 49 percent in 2011, the agency said. Gas prices above $4 per million British thermal units in the U.S. “should foster additional gas production growth” until 2018, the IEA said. http://fuelfix.com/blog/2013/06/20/iea-says-u-s-natural-gas-output-to-accelerate-next-year/ Jury Still Out on Dynamic Pricing and Customer Satisfaction FierceSmartGrid | June 20th, 2013 As utilities slowly roll out smart grid-related pricing programs, they are making great strides related to the education efforts supporting these programs as they learn from each other and increase and improve their own methodologies and strategies around consumer engagement, according to SmartEnergy IP, the research division of SmartMark Communications, LLC. The results of a nationwide utility survey related to the best practices surrounding these pricing programs were presented on Tuesday at the Smart Grid Customer Education Symposium in Nashville. Of the utilities participating in the research, 75 percent had rolled out some form of pricing Regardless of one’s view on whether energy prices will rise or fall, all should determine if there is an opportunity to save money or to mitigate risk. Contact your account representative to explore all current offers and discuss market conditions. NYMEX Commodities 6/19 6/12 Year Ago Crude Oil July 2013 $98.24 $95.88 $2.36 $84.03 Natural Gas July 2013 $3.96 $3.78 $0.19 $2.59 Gas (RBOB) July 2013 $2.89 $2.81 $0.08 $2.85 Heating Oil July 2013 $2.97 $2.90 $0.08 $2.64 Platts-ICE Forward Curve, Electricity Prompt: 7/2013 6/19 6/12 Year Ago Mass Hub $56.50 $55.75 $0.75 $43.25 N.Y. Zone $67.00 $64.25 $2.75 $51.00 PJM West $60.25 $59.00 $1.25 $48.50 ERCOT $64.50 $72.50 ($8.00) $52.25 NYMEX Natural Gas Strip Averages Prompt: 7/2013 6/19 6/12 Q3 2013 $3.97 $3.79 $0.19 Q4 2013 $4.08 $3.93 $0.16 Summer 2013 $3.97 $3.79 $0.19 Fall 2013 $4.01 $3.84 $0.17 Cal. Yr. 2013 $4.03 $3.86 $0.17 Cal. Yr. 2014 $4.18 $4.06 $0.12 12 Months $4.10 $3.95 $0.15 24 Months $4.17 $4.04 $0.13 36 Months $4.22 $4.11 $0.11 NOAA 6 to 10 Day Outlook: Color indicates the probability of forecasted temperatures being above or below a historical average for the period. June 20th, 2013
IEA Says U.S. Natural Gas Output to Accelerate Next Year Fuel Fix | June 20th, 2013
U.S. natural gas production will accelerate from 2014 through 2018 as higher prices spur drilling and expanded infrastructure allows more shale supplies to reach the market, according to the International Energy Agency.
Gas output will reach 797 billion cubic meters by 2018, 17 percent higher than last year’s total of 681 billion, the IEA said in its Medium-Term Market Report, released today.
“After stabilizing in 2013, gas output will rise strongly over the rest of the forecast period,” the Paris-based agency said. “As in the five previous years, shale gas continues to be the key driver behind this growth.”
U.S. shale production increased sixfold to 265 billion cubic meters last year from 45 billion in 2007, the IEA said. More than 75 percent of the current shale output is coming from the Marcellus, Barnett, Fayetteville and Haynesville deposits, the agency said.
Exxon Mobil Corp. (XOM) and Chesapeake Energy Corp. (CHK), the two largest gas producers in the U.S., have both been “radically shifting” their onshore drilling focus from gas deposits toward oil and other liquids, the IEA said. Output of the resulting associated gas has exceeded production from dry gas plays over the last two years, according to the report.
Associated gas will account for 54 percent of U.S. gas production in 2014, up from 51 percent last year and 49 percent in 2011, the agency said.
Gas prices above $4 per million British thermal units in the U.S. “should foster additional gas production growth” until 2018, the IEA said.
Jury Still Out on Dynamic Pricing and Customer Satisfaction FierceSmartGrid | June 20th, 2013
As utilities slowly roll out smart grid-related pricing programs, they are making great strides related to the education efforts supporting these programs as they learn from each other and increase and improve their own methodologies and strategies around consumer engagement, according to SmartEnergy IP, the research division of SmartMark Communications, LLC. The results of a nationwide utility survey related to the best practices surrounding these pricing programs were presented on Tuesday at the Smart Grid Customer Education Symposium in Nashville.
Of the utilities participating in the research, 75 percent had rolled out some form of pricing
Regardless of one’s view on whether energy prices will rise or fall, all should determine if there is an opportunity to save money or to mitigate risk. Contact your account representative to explore all current offers and discuss market conditions.
NYMEX Commodities
6/19 6/12 Year Ago
Crude Oil July 2013 $98.24 $95.88 $2.36 $84.03
Natural Gas July 2013 $3.96 $3.78 $0.19 $2.59
Gas (RBOB) July 2013 $2.89 $2.81 $0.08 $2.85
Heating Oil July 2013 $2.97 $2.90 $0.08 $2.64
Platts-ICE Forward Curve, ElectricityPrompt: 7/2013 6/19 6/12 Year Ago
program as part of a larger smart grid effort, including time of use, critical peak pricing, critical peak rebate or peak time rebate, or another type of dynamic or complex pricing program. For those that were involved in TOU programs, 62 percent were fully deployed. Surprisingly, 20 percent of utilities say these programs were not optional, customers had to participate whether they wanted to or not, even without regulatory requirements mandating them to do so.
When it comes to customer satisfaction with these programs, mandatory or not, utilities are reporting a generally favorable attitude toward these pricing programs, although the industry as a whole is still uncertain about the larger impacts of these pricing programs on customer satisfaction. High opt-out rates indicate to the contrary that utilities still have a ways to go in educating customers on why they should participate in these programs.
Natural-gas Futures Extend Losses After EIA DataMarketWatch | June 20, 2013
Natural-gas futures extended losses on Thursday after the U.S. Energy Information Administration reported a rise of 91 billion cubic feet in U.S. inventories for the week ended June 14. Total stocks now stand at 2.438 trillion cubic feet. July natural gas was at $3.88 per million British thermal units, down 8 cents or 2.2%.
Oil
Crude Falls on Signs of China Slowdown Amid Fed StimulusBloomberg | June 20, 2013
West Texas Intermediate crude fell to a one-week low on signs China’s economy is slowing and after Federal Reserve Chairman Ben S. Bernanke said the central bank may start curbing bond purchases later this year.
WTI futures for July delivery, which expire today, dropped $2.24, or 2.3 percent, to $96 a barrel at 9:20 a.m. on the New York Mercantile Exchange. They touched $95.70, the lowest level since June 13. The more actively traded August contract was down $2.45 at $96.03. The volume of all futures traded was 94 percent above the 100-day average.
Brent oil for August settlement declined $2.72, or 2.6 percent, to $103.40 on the London-based ICE Futures Europe exchange. The European benchmark grade was at a $7.37 premium to the WTI contract, compared with $7.64 yesterday.
General Disclaimer: This information is provided as a courtesy to our customers and should not be construed as an offer to sell or as a solicitation of an offer to buy contracts or any energy commodity. Listed utility supply prices are averages of C&I rates as filed with the appropriate regulatory commission. Reliance on this information for decisions is at the sole risk of the reader and past performance is not necessarily indicative of future results. This information is based on factual data obtained from sources believed to be reliable, but its accuracy is not guaranteed.
NYMEX Natural Gas Week-to-Week Price Change
NYMEX Natural Gas Week-to-Week Price Change - Yearly Snapshot
Working gas in storage was 2,438 Bcf as of Friday, June 14, 2013, according to EIA estimates. This represents a net increase of 91 Bcf from the previous week. Stocks were 559 Bcf less than last year at this time and 47 Bcf below the 5-year average of 2,485 Bcf. In the East Region, stocks were 94 Bcf below the 5-year average following net injections of 60 Bcf. Stocks in the Producing Region were 3 Bcf above the 5-year average of 930 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 44 Bcf above the 5-year average after a net addition of 11 Bcf. At 2,438 Bcf, total working gas is within the 5-year historical range.
Summary
Note: The shaded area indicates the range between the historical minimum and maximum values for the weekly series from 2007 through 2011.
