Only Thing Constant in Life is Change
August 22, 2019
The only thing constant in life is change…
Over the last couple of years, we have seen a lot of changes in the energy industry. We have seen companies leaving the state (not selling energy in PA…NJ anymore). We have seen companies sell their books in NY and NJ to another provider and leave the state.
Then we have providers involved in outright sales…Struggling companies or upstarts are being bought out by the bigger providers.
The one fallacy you will always hear when something like this happens is….
Everything will remain the same…
The transition will be seamless…
When I hear those words…you know it is time to worry…
Yes, there has been a lot of movement in the industry. And what we find as a result is….
Lack of continuity
People like to deal with people they know, feel comfortable with and can trust. Business is all about building relationships.
Our clients tell us they get a couple of calls a week from people trying to bird dog and sell them energy. To get their attention, they will say just about anything….
You are probably paying too much for your electric. We have a 5 cent rate that can really save you money.
I met with one prospect who proudly showed me their contract. Yep, the contract said 5 cents but it also stated the price did not include transmission cost, line loss and taxes. When we reviewed their current bill, the owner found out they were actually paying over $.14 cents per KWH.
They turned to me and said…
How could they do that…
Can I get out of this contract…
One of our clients recently received an email from a new broker stating…
Gas prices are at all-time lows through 2023 at the moment.
Our client bit the bait and sent it to me.
Can you call me about this…
Please be careful…
Many salespeople will say just about anything to get your attention. They are not looking to build a relationship. They are looking for a quick sale…
A hit and run.
The old bait and switch….
However, they fail to provide all the facts.
Chances are… if you try to contact them in a year or so to resolve an issue or discuss your renewal…..
They will be long gone.
At HBS…
Continuity is the most important thing we can offer. We pride ourselves on the relationships we have built over the last 20 years. Customer satisfaction has played a major role in the success of our company.
We are committed to providing the best solutions for our clients.
And as an added bonus…
We even service your account thru the length of the contract, and we will work with you during your renewal.
Gas It Up
June 30, 2016
The past 3 months
Natural gas prices have been on the rise
After establishing a new floor
With the Nymex dropping under $2.00 a dekatherm
It started an accent
And is now heading towards $3.00
That would be a 50% increase
What caused this sudden rise….
Some say…..
Supply / Demand
Others say greed
With the market choking on gas
And gas prices being low
They started shutting down wells
That can certainly drive prices up
Now throw the weather into the mix
Did we have a spring…
Maybe we will have a hot summer
The market is in flux
Should the long range forecast see a hot summer
Prices will continue to rise
If cooler temperatures prevail
You will start seeing prices back off
Should that be the case…
We will see a window of opportunity
For gas and electric prices will drop and
Become even more competitive
In the energy business
Timing is everything
We’ll keep you posted
Looks What’s New
June 27, 2016
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Happy Earth Day
April 22, 2016
I can remember back on 1970
When they first proposed the idea of
Earth Day
Many thought…
Those damn hippies
Now they want
Their own day of recognition
Ever wondered how Earth Day started?
This observance arose from an interest
In gathering national support
For environmental issues.
Here it is 2016
There are still issues
That must be address
God blessed us with this gift
Called Earth
He made it our responsibility
To care for it
To share these fruits with others
This responsibility
Should not be taken lightly
We are only here for a short time
Everything we do
Should be mindful of this gift
Handle it with care
For it is a….
Present
Natural Gas Soars On Fears of a Polar Redux
November 7, 2014
As reported in Wall Street Journal
By
Tim Puko
A repeat of last year’s snowy, Arctic-cold winter is looking a little more likely today. Natural gas traders, still scarred by the memory, are bunkering in.
Buyers have been rushing into the gas market for a week on fears of a sequel to last winter’s Polar Vortex, which walloped the eastern half of the U.S. with brutally cold temperatures from the deep south up to New England. Many spent months dismissing that possibility as simple panic, but now meteorologists are getting more pessimistic.
Both Commodity Weather Group and WeatherBELL Analytics LLC released long-term forecasts this week showing a notably higher risk for a cold December. That was supposed to be relatively mild month this winter, balancing out a cold January and February. Now the whole winter is shaping up to be “pretty nasty,” WeatherBELL said.
That has propelled natural gas to a six-session rally. It’s rebounded nearly 18% since it hit its 2014 low last week. Gains of nearly 3% Tuesday are pushing it near a three-month high.
And traders are all wondering if the winter of 2015 will bring a repeat of 2014.
“I think it’s a reasonable risk,” said Matt Rogers president and meteorologist at Commodity Weather Group in Bethesda, Md. An early season burst of cold starting next week is already “really spooking a lot of people.”
More than half of all U.S. homes use natural gas as their heating fuel, making the natural gas market especially vulnerable to weather. Tepid demand had capped the market for four months and had bankers and investors fearing a glut by the spring. The new forecasts have flipped that script, at least temporarily.
Timothy J. Collins, director at Fairfield Advisors LLC in Madison, N.J., has had to get out of spread bets that depended on falling prices in January, he said. He is now trying to buy into positions that would benefit from rising prices that month, but he still thinks that record production will help balance out the fear of a Polar Vortex repeat, he said.
“I think people are overly sensitive to it,” said Mr. Collins, whose fund manages $35 million. “You know how they say the military is always trying to fight the last war? Well, we keep trading the last position.”
The rally could produce bargains for stock investors, said Jonathan Waghorn, co-portfolio manager at Guinness Atkinson Asset Management Inc. in London. Its $84-million fund holds Chesapeake Energy Corp., QEP Resources Inc. and Ultra Petroleum Corp, among other oil and gas producers that could benefit from rising gas prices balancing out free-falling oil prices.
“Gas is strong, yet the energy equities names are all getting hit,” Mr. Waghorn said. “If you believe the gas story, today’s giving you a good opportunity to pick up some energy names getting smashed by weak oil.”
Polar vortex: How will it affect your utility bill?
January 15, 2014
As reported in Christian Science Monitor
By David J. Unger, 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 »
Turning Tables
March 21, 2013
Several weeks ago
I spoke about the projected
Increase of gasoline prices
Over the upcoming months
Experts were predicting the price
Of gasoline could reach…
The dreaded $4.00 a gallon mark
Before the summer hit
At the same time….
We were seeing
Natural gas prices
Continuing to fall….
The thought was….
That the Nymex (gas out of the ground)
May be heading…..
Back under $3.00 a decatherm
Well……..
The experts were wrong
The price of gasoline in NJ
Has been dropping
Over the past few weeks
Today I saw it listed for
$3.379 a gallon
(Don’t forget that last 9
You are not paying $3.38 a gallon)
Gasoline prices are….
Down about 25 cents
Do you think we can head into the low 3s?
Possibly sneak under $3.00 a gallon
With summer insight…
That could be a stretch…
Think of all those cars
Heading for the shore
Stay tuned…….
Natural gas prices
On the other hand…
Have jumped
Over the past 3 weeks
Near the end of February
The Nymex was around
$3.15 a decatherm
The talk was….
That the Nymex
Could be heading under $3.00 a decatherm
Surprise….Surprise….Surprise
With little or no warning
The nymex took off running
As of this writing
It is $3.965 a decatherm
Poised to break the $4.00 mark?
That is a 25% jump…
In less than a month
There is little or no support
To this Meteoric rise
Yeah, we had some cold weather
After all, it is winter
December and January
Were fairly mild
It did get cold in
February and March but…
The overall winter
Has not been that cold
Spring started yesterday
That tells me the weather will be….
Getting warmer
With warmer weather
The demand will drop
They are still dealing with
Abundant supplies
The nymex should settle down
And start dropping again
Don’t change the channel
We will keep you updated
With any breaking news
For more information contact us
george@hbsadvantage.com
Smart Solutions for Smart Business
Gas Prices could soon drop 50 cents
October 22, 2012
10:59 PM, Oct 20, 2012
With inventories rising and demand waning, gasoline prices could plunge 50 cents a gallon from October’s $3.86 peak average over the next few weeks, providing a lift for the economy and possibly becoming a factor in next month’s presidential election.
Gasoline, now averaging $3.69 a gallon, is expected to fall to $3.35 or lower by late November. In some regions, prices have already sunk below $3.
“Most of the country is heading appreciably lower the next few weeks,” says Tom Kloza of the Oil Price Information Service, who notes wholesale prices in some key markets have dropped from as high as $4.35 a gallon to $2.71. Pump prices typically lag big wholesale drops. But Kloza expects retail prices to sink five to 15 cents a gallon over each of the next three weeks.
The drop could provide a boost to consumer spending and influence next month’s presidential race, where gas prices have been a hot-button issue for much of the campaign. Several battleground states, including Ohio, Pennsylvania and Wisconsin, are enjoying big price drops.
“Certainly, lower gas prices are helpful in terms of consumer spending by increasing disposable income,” says Brian Bethune, chief economist at Alpha Economic Foresights. “And if prices come down at a rapid rate in the next three weeks, that would tend to help the incumbent. It may not be logical, but if people see problems with the high cost of food or gas, it’s the president who tends to get the blame.”
Gas prices have remained stubbornly high well past their traditional Memorial Day weekend peak, due largely to supply shortages and refinery woes on the West Coast and Midwest. But with oil inventories rising and production issues ebbing, prices have been easing the past week, a trend likely to accelerate
. “This is very much gravity at work,” Kloza says. “The faster prices soar, the more prone they are to panic sell-offs.”
Kloza expects prices to bottom in the $3.30 range. Gasbuddy.com analyst Patrick DeHaan and energy analyst Brian Milne of Telvent DTN see a $3.35 bottom. Barring rising troubles in the Middle East or refinery issues in the U.S., prices could remain in that range through early 2013.
On Friday, gasbuddy.com was tracking some central Ohio stations selling gas for $2.97 a gallon. Gas prices remain stubbornly high in California — the nation’s priciest state averaging $4.51 a gallon — although some stations are charging more than $5. Energy experts expect prices to bottom in the $4 range. “California is not completely out of the woods yet regarding supplies, and their refineries haven’t been able to keep up,” Milne says.
54.5 mpg will fuel a national renewal
August 22, 2012
With the darkest days of the recession behind us, Americans are looking to better economic times. They also are looking forward to their politicians working together to find solutions.
While there are many areas where different sides are far apart, there is a very good news story expected from Washington this week. It’s an issue that almost all Americans can get behind: higher fuel efficiency.
An agreement set to be finalized by the Obama Administration as soon as this week promises that by 2025, new vehicles will get an average of 54.5 miles per gallon. This builds on standards already in place, which by 2016 will raise the average fuel efficiency of the new passenger vehicle fleet to 35.5 mpg.
The standards will be introduced incrementally. For consumers, this means that in less than 15 years, everything from compact cars to pickup trucks will, on average, burn about half as much gas as vehicles driven today. This saves about $8,000 in costs over the life of a new vehicle.
This is Washington at its best, working to move America forward.
Republicans and Democrats, automakers and environmental groups supported the stronger standard because it redirects hard-earned cash away from the gas pump and back into your wallet. They also understood that the standard fortifies national security and protects the environment.
And this agreement puts Americans back to work.
Thousands of new jobs are being created in the automotive industry, the largest manufacturing employer in the U.S. According to the Bureau of Labor Statistics, the auto industry has added more than 230,000 jobs since June 2009, when the industry scraped bottom. Most of these jobs are in the manufacturing sector, but U.S. auto dealerships are beefing up their payrolls as well.
Stronger standards give automakers a long-term roadmap to improve vehicle efficiency.
By greening the Rust Belt, the U.S. can seize global leadership in innovative, fuel-efficient technologies – a market historically dominated by Europe and Asia.
The jobs that accompany this domestic expansion aren’t outsourced; they remain at home.
In Saginaw, Mich., for example, a century-old auto supplier called Nexteer Automotive recently added 650 employees to help manufacture electric power steering components for pickup trucks. These components replace more energy-intensive hydraulic systems. Electric power steering is a fast-growing segment of Nexteer’s business, and automakers who want to squeeze more efficiency from their fleet are driving the increased demand.
Outside the auto industry, job growth will expand even further – by more than half a million jobs, many in discretionary sectors like services and retail – because money saved at the pump will be spent on things like tuition, new clothes, or a vacation.
The benefits don’t stop there. Cutting energy use while driving also reduces our dependence on oil. By 2030, the 54.5 mpg standard will slash oil imports by one-third. This enhances national security and strengthens the economy by investing money in the Midwest – not in the volatile Middle East.
Fuel efficiency standards also protect the environment by reducing carbon pollution equal to taking 85 million cars off the road. This helps fight climate change that leads to costly droughts and dangerous heat waves. Less pollution also means a healthier populace and lower medical bills.
Washington responded to America’s demand for more fuel efficient cars. By implementing a smart, tough standard, Washington showed that it is committed to creating good jobs and continuing our economic recovery.
54.5 mpg is a standard that works for America.
Roland Hwang is the Transportation Program Director for the Natural Resources Defense Council.
Read more: http://www.politico.com/news/stories/0812/79949.html#ixzz24J7UKPjn
Inching Up
June 1, 2012
While everyone has been keeping
Their eyes on gas pump prices
The big question
Will it go over $4.00 this summer?
Natural gas has been making its own mark
After nymex prices
Hit a 10 year low
In late April
We have seen the Nymex prices
Run up
Over 25%
During the last 30 days
You may have heard me say before….
You don’t know where the floor is
Until you passed it
We watched a slow steady fall of the nymex
Over a long period of time
Once it got to a point
Where investors may have thought
It may be…..
Too low
It shot up
Was it a market correction?
Analyst start talking about possibilities
Of having a hot summer
That will increase demand…
For 30% of the electric is generated
From natural gas.
Prices inch up
They also start looking at
Hurricane reports
That could affect the wells
In the Gulf of Mexico
Prices inch up more
They have even started to cap
Some of the natural gas wells
Hmmm
Supply / Demand
Cut down on the supply
That will get the
Prices to inch up
Higher
Market prices are still very competitive
It just that…..
In this market
Timing is everything
Natural gas and electric prices
Are still very competitive
If you have not participated in deregulation
Now is the time…
To lock in on the savings
Under contract
Now is the time to start looking
To lock in your renewals
To all HBS customers
Please take my phone call
To learn more contact
Visit us on the web www.hutchinsonbusinesssolutions.com
Hutchinson Business Solutions 