Natural gas futures rose Monday, climbing for the fourth straight session, as traders bet that a powerful winter storm moving toward the East Coast, along with a recent cold spell, would boost demand for the heating fuel.
Natural gas for December delivery fell 5.1 cents to settle at $3.566 per million British thermal units in New York yesterday, breaking a six-day streak of gains, after prices on Tuesday rose to $3.617, the highest closing price since Oct.30.
Natural gas futures dropped from a two-week high in New York amid speculation that a government report tomorrow will show a U.S. inventory gain that’s above average for this time of year.
Gas slid 1.4 percent as the Energy Information Administration may say stockpiles expanded by 22 billion cubic feet last week, based on the median of 18 analyst estimates compiled by Bloomberg. Estimates ranged from gains of 2 billion to 33 billion. The five-year average injection for the week is 19 billion. Supplies fell 12 billion a year earlier.
The story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.
In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.
Unconventional treasure: Shale gas is trapped deep inside rock formations.
Shale gas is a new and abundant source of natural gas, trapped in rock formations. Oil companies have known about it for decades but always dismissed it because it was too expensive and difficult to extract.
In the past few years new technologies that pump water underground to fracture the rock and free the gas have been perfected. The breakthrough has opened a new frontier for the energy industry and turned long-held assumptions about the world’s dwindling supplies on their head.
via Shale gas blasts open world energy market on Propurchaser
If you have ever wanted to understand changes in your suppliers’ electricity costs, you might find this U.S. federal government website useful. It identifies regions and ‘hubs’. The best news is that pricing for most hubs is free and a matter of public record.
There are several options for reducing the carbon footprint:
· redesign manufacturing process; use alternative raw materials and new technologies to find energy efficiency savings
· shorten supply chains; reduce CO2 from transport
· Use / purchase renewable energy; renewable energy produces (almost) zero carbon
Read the rest of Cutting Carbon in the Supply Chain » » »
The European Parliament voted last Wednesday two resolutions calling on the EU countries to exercise restraint on the development of shale gas. It calls for “strong regulatory regimes” regarding hydraulic fracturing, the biggest point of contention regarding the exploitation of shale gas. European countries are advised to be “cautious” when granting new licenses.
This is important, considering that shale gas exploitation has drastically driven US gas prices down and has started to impact other industries. The resolutions adopted in Strasbourg are not binding, and the decision to operate or not unconventional reserves remain under the sovereignty of European Member States. France banned hydraulic fracturing, while Bulgaria and the Czech Republic have declared a moratorium. Poland, meanwhile, will take advantage of its large shale gas reserves to reduce its dependence from natural gas imports from Moscow.
No matter the place — California’s Central Valley, southern Nevada, the Colorado River, the Southern Plains — water is harder to find across much of the West. And, with energy demand and populations growing, once-unfathomable choices about water pricing and the future of agriculture are unavoidable.
Water has been on the sustainability agenda for many years, but this article brings in to stark focus the reality of declining availability of fresh water in North America.
It raises the question, could water shortages prove a risk to your businesses, either in their operations or supply chain? Reducing water consumption is not just an environmental issue, it is a real and present business issue.
US benzene spot prices tumbled swiftly this week after hitting a record $5.35/gal ($1,599.65/mt) DDP US Gulf on Friday, Platts data showed.
On Tuesday, October benzene was assessed at $5.18/gal ($1,548.82/mt) DDP, down 9 cents/gal ($26.91/mt) from Monday, while November benzene was assessed at $4.55/gal ($1,360.45/mt) DDP, down 25 cents/gal ($74.75/mt).
Weakness in the energy complex contributed to the bearish aromatics market.
Plunging prices have turned the U.S. into one of the most profitable places in the world to make chemicals and fertilizer, industries that use gas as both a feedstock and an energy source. And they have slashed costs for makers of energy-intensive products such as aluminum, steel and glass.
“The U.S. is now going to be the low-cost industrialized country for energy,” the energy economist Philip Verleger says. “This creates a base for stronger economic growth in the United States than the rest of the industrialized world.