Where’s The Bottom

November 12, 2010

Natural gas prices continue being very competitive. 

How low will they go? 

Hurricane season does not officially end until November 30th, however it is rare to see a tropical storm in the Gulf this late in the season. The 2010 Atlantic Hurricane season was very active this year, with 19 named storms. The last time I looked we were up to T for Toma. 

Here we are heading into the end of November and natural gas nymex prices are still under $4.00. 

Where is the bottom? 

Without a crystal ball, this ends up being a very difficult question to answer. 

When you look at the overall picture not much has changed, Storage levels are still at a 5-year high and holding. It has been like that for several years now.

 We do have the Marcellus gas in Western PA. Some geologists estimate that it could yield enough gas to supply the entire East Coast for 50 years.

 That must prove to be the major factor. It is the old supply demand scenario?

The bottom line states, that if your business is currently spending a minimum of $3000 a month and you are still with the local provider, you should be looking at buying natural gas from a 3rd party provider in the deregulated market.

Did you know that if you are a PSEG customer, you ended up paying 15% higher for natural gas over the last year?

How much savings would that have equated for your company?

With natural gas prices being so low we have also seen this translate into very competitive deregulated electric prices. We recently signed a client the other day and they will be saving 30% on their electric supply cost for the next 2 years.

I know that savings is a parity of how much you spend but let me ask again.

How much savings would that have equated for your company?

If you are currently spending over $3000 a month on electric and your company is still with the local provider, you should be looking at buying electric from a 3rd party provider in the deregulated market.

To find out more about this opportunity email george@hbsadvantage.com or feel free to call 856-857-1230.

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