Search Results for: gas price

"Cheap" Natural Gas Soars by 15% in a Single Day Based on Better Economic News and Less Gas Going to Storage

ByRod Adams

…terday there was another day of excitement on the trading floor as natural gas prices increased by 15% in a single day, rising 42.7 cents per million BTU to settle in New York at $3.256 per MMBTU. As is true for most market fluctuations, the reporters and traders can list a number of factors that caused the movement. People with longer than daily time horizons should recognize that the previous price of $2.90 is/was clearly unsustainable in a worl…

Energy Prices are High Because Some Powerful People Like Them That Way

ByRod Adams

…y executives play innocent and claim that they have no control over oil or gas prices, but they also like to brag to their stockholders about how their financial acumen has resulted in another record profit. “In 2003, ExxonMobil delivered the strongest earnings performance in the corporation’s history. We achieved net income of $21.5 billion and cash flow from operations and asset sales of $30.8 billion. Return on capital employed stood at an indu…

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How Can We Halt The Reverse Great Bandwagon In Nuclear?

ByRod Adams

…ar energy) that have helped wind and solar production grow so rapidly. Low gas prices aren’t primarily a result of increasingly cheap production; they’re a result of the way that markets establish a price that balances supply and demand. Current gas prices, along with a sharp drop in the oil prices that had been propping up exploration companies producing both gas and oil from the same hole in the ground, have led to a rapidly increasing number of…

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Purposeful price pumping by constraining supply

ByRod Adams

…ural gas cartel will control the US price of electricity as well as the US price of gasoline. Consider the power that Russia has over the Ukraine and Europe by supplying the natural gas they need to produce electricity. Imagine if OPEC becomes an agent of foreign policy rather than just an economic agent. Or maybe it already is. The price of oil dropped after Russia (a major oil exporter) invaded Afghanistan and it rose after the US (a major oil i…

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Global Climate Panel at Nuclear Energy Assembly

ByRod Adams

…n on that, yes or no? Your sense? Vine: Ummm… My sense is that low natural gas prices… regardless that companies are taking write downs and they are harming all of the sources that bid in at low or zero prices like nuclear, wind and solar, the price-takers in the market, but that’s how it was designed to work. It’s to the benefit of consumers, more than having an environmental goal, for example, which is what we are talking about here. That market…

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Smoking gun – Russia’s plan to dominate energy markets

ByRod Adams

…a contracted link to the market price of oil. High oil prices have driven gas prices higher. The price of Russian gas reached $436 per 1,000 cubic meters ($12.35 per MMBTU) as of December 31, 2011, up 38.7% year-on-year, the Economic Development Ministry estimated. The average contract prices for Russian gas at the German border went up 28.9% to $381.50 per 1,000 cubic meters ($10.80 per MMBTU), according to IMF. Geopolitical factors have been ke…

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Modest proposal to Chris Crane, CEO of Exelon

ByRod Adams

…nd. Source – US EIA natural gas stats As shown in the above graph, natural gas prices charged to electricity producers vary wildly. When natural gas prices were as high as $12.00 per MMBTU the last-in generator needed prices on the order of $120 per megawatt-hour just to pay for the cost of fuel, the wear on the plant, and the minimal cost of operators associated with a natural gas fired power plant. Your predecessor, Mr. John Rowe, thought he was…

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Nuclear proponent versus free market advocate for natural gas

ByRod Adams

…r it is ethanol or whatever. A historical note: the prolonged high natural gas prices occurred because of maximum price regulation, ironically, which caused shortages in interstate markets … and thus desperate fill-in gas at name-your-price. Free market periods of no price regulation (such as today) have never encountered the high prices of the 1970s. Winter peaks maybe, year-round no. Let the market decide…. I would not pick any fuel as an inhere…

Working for my grandchildren – They are the reason I am a pronuclear activist

ByRod Adams

…07 per barrel, 3.6 times higher than it was less than 8 years ago. Natural gas prices are low as the winter heating season ends, but the smart money is betting on relatively near term price increases. For example, BHP Billiton just agreed to spend $4.75 billion to purchase a limited quantity of US natural gas reserves. That deal that will look a lot smarter when prices begin the inevitable climb. The climb will happen when the rate of extraction b…

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NAVIGANT analysis of Vogtle expansion provided to JEA in Sep 2017 understates fuel price risks

ByRod Adams

…the Navigant analysis needs improvement is in the range of future natural gas prices considered. When the analysis was produced, there was a tightly limited range of modeled price trends, essentially all of which assumed that the abundance of gas stored in tight shale rock will keep gas prices low with annual increases that are only 1% above an assumed rate of general inflation. Here is how the report deals with the magnitude of the risks associa…

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Energiewende – planned by industry and government without customer considerations

ByRod Adams

…ark where residential electricity is 35-40 cents EVs are a non-starter. If gas prices rise to $4 and battery banks fall in price by over half (with no increase in electricity prices) then EVs might be comparable. But that’s a lot of Ifs, and it will take ten years of consecutive 8% price decreases for battery prices to halve. Brian Mays Zachf – You’ve missed the point. Battery bank … $28,000 Electricity … $8,000 Showing off how hip you are to…

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Big bets in energy technology from “Beyond Petroleum”

ByRod Adams

…d out how to combine horizontal drilling and hydraulic fracturing; oil and gas prices rose sharply enough in the period from 1999-2005 to enable developers to make a convincing case to financial backers that it was time to put those technologies to use. The Energy Policy Act of 2005 also contained several provisions that empowered often cash-strapped states to approve drilling plans without federal environmental reviews. Here is a quote from the P…

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