January 29, 2014

The polar vortex punch


Keeps punching



This week we saw


Temperatures plunge….


Once again



It may have been nice….


The first time around




But by now…



People seem to be getting


A little groggy



It’s time to change the channel




As I stated last week


The energy market did react


To the plunging temperatures



Basis (transportation cost) went up 1000% in 1 day



Over the past year



Basis pricing


Has been at a 10 year low



The jump in pricing


Had many experts just shaking their heads



They were finding themselves in…



Unchartered waters



This was beyond whiplash




We do not see these prices sustaining



If you look at natural gas futures


A couple months out


Prices tend to be


More reasonable




You just do not want to


Be shopping your account


And include the present month energy pricing


In the mix



For it will skew the whole proposal


And you will end up paying a premium




They say…


Patience is a virtue



In this business


You need it

Polar Vortex

January 29, 2014

Let’s take a look


At our extended weather forecast…






Tomorrow is going to be cold




The next day…


Should be just as cold



Possibly colder






The day after that…



Will probably be just as cold




However, we also show that


There could be a chance of….



Freezing rain…



It might be snow…






Possibly a Wintery Mix




This can all bring icy conditions





Let’s be careful out there






Let’s take a minute to look at



What may be causing



This weather pattern






We would be looking to the



Western Pacific




However it seems that La Nina



Is taking the winter off







We have been visited by



A polar vortex


Pushing down from the Artic




In the first two weeks of 2014



Much of the United States weathered


A cold snap of unprecedented proportions…




A weather phenomenon known as…


The “Polar Vortex”



Shattering temperature records across the country




Just when you thought it was safe


To go outside…




Another polar vortex is on the way



This one is due to hit



This week





Is this a new phenomenon?




I thought it was just cold outside




Because it is…






The energy markets


Have been in a reaction mode




Put a name on the weather conditions



And they are all in




Prices jump




You wait a day…



They jump again




You wait a few more days



Prices start to ease back down





Prices never come down…



As fast as they go up




With another polar vortex



On the way




You can almost hear



The energy market’s teeth clattering




While all this is happening




We find it best


To look past


The frenzy



One thing I have learned



Being in the energy business…


For 13 years




Patience is a virtue




Our goal has always been




To educate our clients






Provide the best opportunity



For savings





With a lower basis (transportation) cost



And increasing natural gas supplies




Most experts feel



Natural gas prices will settle down




Once again bringing



Great opportunities for savings



In both



The Natural Gas and Electric markets




We just have to wait for the Polar Vortex



To pass

As reported in Christian Science Monitor

By             , Staff writer / January 8, 2014

The polar vortex gripping the nation is as unpleasant for utilities and grid operators as it is for you. What does the polar vortex mean for your next utility bill?

What happens when much of the nation simultaneously reaches for the thermostat and turns up the heat? Energy prices rise.

With Americans shivering through a “polar vortex,” utilities and grid operators are scrambling to meet demand amid record low temperatures. A stressed power grid and constrained natural gas pipelines are already pushing up the price of electricity and natural gas on wholesale markets.

The good news is that consumers are relatively insulated from the polar vortex’s temporary price shocks (besides the obvious cost increase of turning the heat up for a prolonged period). The bad news is that if this is the first polar vortex of many to come, that prolonged grid strain and need for new infrastructure will almost certainly make its way into the bottom line of your monthly utility bill.

“Most retail customers are set up through regulated natural gas rates for this reason – so that short-term spikes in the spot price don’t automatically flow through,” says M. Tyson Brown, statistician at the US Energy Information Administration (EIA). “To the extent that this is a long-term trend – that really affects the price people pay.” Read the rest of this entry »