Fogbow

Natural gas prices are rising and could be the most expensive in 13 years this winter
PUBLISHED THU, SEP 9 20213:59 PM EDTUPDATED FRI, SEP 10 202111:45 AM EDT
Patti Domm

KEY POINTS

• Natural gas prices have been racing higher and are now 99% higher year-to-date, on combination of supply concerns and rising demand.
  Natural gas is expected to keep rising, and if there is an especially cold winter, Goldman Sachs analysts see the potential for another doubling of price.
  The jump in prices will impact some consumers who use it for heat, and utilities and companies that use it in production processes.
  In this article

Why natural gas stocks have nearly doubled this year

Natural gas prices have doubled this year and are expected to continue to rise, resulting in larger winter heating bills for some consumers and higher costs for electric utilities.

Natural gas is plentiful in the United States and has been cheap for years, so the jump in prices this year is eye popping. It has also lifted the shares of companies that specialize in natural gas production, like EQT, Range Resources, Cabot Oil and Gas and Antero Resources.

In the futures market, the natural gas contract for October rose above $5 per one million British thermal units, or mmBtus, for the first time since February, 2014. Besides electricity and heating demand, natural gas is an important feed stock and is used in the processing of chemicals, fertilizers, paper and glass, among other products.



https://www.cnbc.com/2021/09/09/natural ... inter.html

Tackling soaring energy bills, Spain to cap gas price, utilities' profits
By Nathan Allen

MADRID, Sept 14 (Reuters) - Spain's cabinet passed emergency measures on Tuesday to reduce sky-high energy bills by redirecting billions of euros in extraordinary profits from energy companies to consumers and capping increases in gas prices.

By limiting the profits that hydro- and other renewable power generators can make from surging electricity prices, the government expects to channel some 2.6 billion euros ($3.07 billion) from companies to consumers in the next six months.

Energy Minister Teresa Ribera told a news conference the measure would remain in place until the end of March, when natural gas prices are expected to stabilise after consumption falls from winter peaks.

In parallel, Spain will use an extra 900 million euros it expects to raise by auctioning carbon emission permits this year to reduce bills, citing high market prices as the reason for the additional funds.

In parallel, Spain will auction an extra 900 million euros in carbon emission permits this year, with the proceeds to be used to reduce bills.


https://www.reuters.com/business/energy ... 021-09-14/

German Power, Carbon Rise to Record on Soaring Gas Prices
By Jesper Starn and Rachel Morison
September 6, 2021, 9:06 AM GMT+2 Updated on September 6, 2021, 10:06 AM GMT+2

• Contract for next year surpasses previous high set in 2008
  Rally for gas, coal and carbon boosts power-generation costs

European power and carbon prices surged to a record, driven by the soaring costs of other energy commodities.

Global energy demand is picking up after the pandemic and a supply crunch in the gas market is boosting the cost of power generation. Hot weather and low wind speeds are curbing renewable power production, while the price of coal -- the dirties of fossil fuels -- has also surged more than 70% in Europe this year.

The rising costs are a pain for consumers and businesses recovering from the pandemic. They also come in the summer, when demand is usually low, setting the stage for a difficult winter. Utilities across Europe are hiking prices at the same time as everything from food to transport costs are also rising, a headache for politicians.

German front-year surpass 2008 record

“As the current strength in wholesale prices increasingly feeds through to retail tariffs in coming months, there’s likely to be growing focus on the role of governments in mitigating the impacts of the rises in both the short and medium term,” said Glenn Rickson, head of European power analysis at S&P Global Platts in London.

Germany Flirts With Power Crunch in Nuclear and Coal Exit

Next-year power in Germany, the regional benchmark, rose 1.2% on Monday to as high as 91 euros per megawatt-hour on European Energy Exchange AG. Gas prices have soared more than 170% this year, while carbon futures have climbed to 63 euros a metric ton, an all-time high.

In a blow to the climate movement, US power companies are ramping up their coal consumption due to surging natural gas prices.

US coal-fired generation is expected to surge by 22% in 2021, the US Energy Information Administration said Monday. That would mark the first annual increase in coal-fired electric power generation since 2014, the EIA said.

Coal was long the main fuel source for the US power grid — even though its environmental footprint is the largest.
In recent years, utilities ditched coal because of concerns about the climate crisis and due to the abundance of very cheap natural gas. US coal consumption fell in 2019 for the sixth straight year, dropping to the lowest level since 1964, as natural gas prices fell to record lows.

With freezing weather sweeping into Texas late this week, subsidiaries for a major pipeline company are threatening to cut off natural gas to the state’s largest power generator — which could impact the electricity supply for hundreds of thousands of customers — over a financial dispute stemming from last February’s deadly winter storm.

Vistra Corp. subsidiary Luminant on Wednesday asked the Railroad Commission of Texas, which regulates the state’s oil and gas industry, to prevent Energy Transfer LP from cutting off fuel to five Vistra power plants, which produce enough electricity to power 400,000 Texas homes, businesses and critical infrastructure such as hospitals and schools.

Railroad Commission officials have not responded to questions about whether the agency will act.

The companies under Energy Transfer, the pipeline company, have told Vistra that gas will stop flowing to five Vistra power plants on Monday unless Vistra pays Energy Transfer $21.6 million, according to the filing.

The “threat to terminate service in the middle of winter is illegal and grossly irresponsible and should be prohibited by this Commission,” Vistra said in the complaint to the Railroad Commission.

Volkonski wrote: ↑Thu Jan 20, 2022 1:42 pm 400,000 Texas homes and businesses could lose power over financial dispute between energy companies
Vistra Corp. asked the Railroad Commission of Texas to prevent Energy Transfer LP from cutting off fuel to five of its power plants on Monday. Vistra said the power supply to at least 400,000 homes and businesses could be impacted.

https://www.texastribune.org/2022/01/19 ... er-winter/

Texas pipeline company walks back threat to cut off gas to power plants
The new development ends the immediate threat that up to 400,000 customers could lose power, but the underlying financial dispute between two energy giants stemming from last February's winter storm remains unresolved.

The pipeline companies had told Vistra that gas would stop flowing to the power plants on Monday unless Vistra paid Energy Transfer $21.6 million that they claim Vistra owes them, according to Vistra’s complaint to the Railroad Commission of Texas, which regulates the state’s oil and gas industry.

The Biden administration has been in regular discussions with a number of countries and companies in Europe, the Middle East, North Africa and Asia about stepping up production of liquefied natural gas to Europe in the event that a Russian invasion of Ukraine leads to gas shortages, multiple US officials familiar with the discussions told CNN.

The State Department, led by Senior Adviser for Energy Security Amos Hochstein, has in the last six to eight weeks been putting together a global strategy exploring contingency options to redirect and increase gas supplies from different parts of the world, a senior US official said.

Reuters reported last week that Hochstein had been in talks with energy companies but that increased production was not a request. The senior US official told CNN that increased production has in fact been discussed, but that companies recognize that increasing production could be risky and would take time.

The countries engaging in the talks include Norway and Qatar, the official said, but the US' outreach has been "truly global" as Washington and allies determine what supplies will be needed to get through the winter and spring if there are gas shortages.

Phoenix520 wrote: ↑Mon Mar 07, 2022 3:19 pm I know it’s a hardship, but gas prices should be high, for chrissakes. Cheap fuel’s how we got into this climate predicament.

Americans are shellfish*.


*An autocorrect. I left it.

Maybenaut wrote: ↑Mon Mar 07, 2022 6:47 pm Gas was $3.99 per gallon in Luray today. It's usually around $3.25.

But we have an EV and a solar generator that produces more than enough power to charge it.

Phoenix520 wrote: ↑Mon Mar 07, 2022 3:19 pm I know it’s a hardship, but gas prices should be high, for chrissakes. Cheap fuel’s how we got into this climate predicament.

Americans are shellfish*.


*An autocorrect. I left it.

AndyinPA wrote: ↑Tue Mar 08, 2022 11:48 am

Phoenix520 wrote: ↑Mon Mar 07, 2022 3:19 pm I know it’s a hardship, but gas prices should be high, for chrissakes. Cheap fuel’s how we got into this climate predicament.

Americans are shellfish*.


*An autocorrect. I left it.

Gas prices are much higher in most places in the world, of course.