All markets saw a drop in forward electric rates as the winter storm passed from earlier in the week.
Colder than normal weather caused volatility in the markets earlier in the week but milder weather gave way to lower rates mid-week.
Natural Gas Markets
The NYMEX has come down from last week. Most of 2022 is now trading below the $4.00 mark.
Futures as of 1/19/2022 versus previous week:
Natural Gas Inventory
Working gas in storage was 2,810 Bcf as of Friday, January 14, 2022. According to EIA estimates this represents a net decrease of 206 Bcf from the previous week.
The Baker Hughes exploration gas count came in at 113 this week, which was up four from last week. There are 28 more rigs in service compared to this time last year.
Most of the country will see at or below normal temperatures for the upcoming week with a few pockets of warmer than normal temperatures.
National Weather Service Updates (NOAA)
Hurricane Watch: Click here to view the National Hurricane Center site.
Equatorial Pacific Outlook:
Click here to view La Nina and El Nino status.
Developers are expected to build 57 GW of new wind and solar resources in the next two years, causing the share of natural gas in the country’s generation mix to fall to 34% by the end of 2023, a decline of 3 percentage points from 2021, according to the U.S. Energy Information Administration. If you would like to receive the Energy Market Update to your inbox weekly, please click here to submit your name and email address. Disclaimer: This information is provided for the use of our customers and potential customers. Power Management Company assumes no responsibility or liability for the accuracy or completeness of pricing or information in this document. Historical data was obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. It is not intended to provide advice or recommendation. Views are subject to change without notice.