Friday, June 19, 2015

Natural Gas--EIA Weekly Supply/Demand Report: Feel the (Power) Burn

Most active July's: $2.766 down .011.
From the Energy Information Administration:

In the News:
Eastern U.S. Power Burn Higher This Year
Natural gas consumption in the eastern half of the country, particularly in the electric power sector (power burn), has been much higher this spring than in previous years, according to Bentek Energy data. Both short-term weather-related factors and long-term structural changes in power markets led to the increase this year.

Temperatures in the past few months have been above average in the eastern United States. The Northeast, in particular, recorded its warmest May ever, according to data from the National Oceanic and Atmospheric Administration. Since May, temperatures in the Northeast averaged 68.4°, 1.8° warmer than the 2010–14 average, with periods of much warmer-than-normal temperatures in early May and this past week. Temperatures this week reached into the high 80s and 90s with high humidity across most of the East Coast. On Monday and Tuesday this week, temperatures in parts of the Northeast were more than 10° warmer than normal, according to the National Weather Service.

Retirements of coal-fired and nuclear power plants have also contributed to the increase in East Coast power burn. In 2015, 12.1 gigawatts (GW) of coal-fired capacity is expected to retire because of the implementation of the Environmental Protection Agency's Mercury and Air Toxics Standards. About 4 GW of coal-fired capacity retired in April, although on average this capacity was operating at a below-normal 25% capacity factor. An additional 32 coal plants, amounting to about 6 GW, are scheduled for retirement this month. Many of these are in Ohio, West Virginia, Kentucky, and Georgia....MUCH MORE
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