October 12, 2009

Greenhouse Gas Issues Got You Down? Negawatts To the Rescue

It is difficult to ignore the current trend towards an economy where carbon dioxide and other greenhouse gases will exact a price that will impact the bottomline for all businesses.

Two weeks ago, the EPA held its ground confirming that on January 1, 2010, the U.S. Environmental Protection Agency will, for the first time, require large emitters of heat-trapping emissions to begin collecting greenhouse gas (GHG) data under a new reporting system. This new program will cover approximately 85 percent of the nation's GHG emissions and apply to roughly 10,000 facilities.

A week ago, the White House issued an Executive Order that requires federal agencies to set a greenhouse gas emissions reduction target for 2020 within 90 days.

On top of that, all federal agencies must increase their energy efficiency, reduce the petroleum consumption of their fleets, conserve water, reduce waste and much more.

Plus all Northeastern states are aggressively implementing carbon-reduction strategies.

What can a company do? The simplest, most cost effective strategy is the most obvious- energy efficiency. The "negawatt" concept, which is reducing your kilowatt usage, is not revolutionary; but it is extremely productive. Power Management has been a leader in producing negawatts through it's LightSavers Lighting Efficiency programs and also through our demand response programs. Talk to Erik Douthit, Executive VP of Power Mangement about an energy efficiency program that will turn your facilities into "negawatt" producers.

Natural Gas Storage Approaching Record Levels
Working gas in storage was 3,658 Bcf as of Friday, October 2, 2009, according to EIA estimates. This represents a net increase of 69 Bcf from the previous week. Stocks were 473 Bcf higher than last year at this time and 480 Bcf above the 5-year average of 3,178 Bcf.

Natural Gas Market Watch-
Prices have risen over $0.14 this morning as price fluctuations continue in the natural gas market.
Intraday Prices
Here are the intraday prices on the NYMEX electronic market today (Monday) at about 11:03 AM for the next six months($ per mmbtu, intraday prices):

Nov. 2009 $4.910 +0.140
Dec. 2009 $5.755 +0.165
Jan. 2010 $6.074 +0.167
Feb. 2010 $5.821 +0.160
Mar. 2010 $5.858 +0.155
Apr. 2010 $5.994 +0.155

Natural Gas Futures:
PMC 30-Day Natural Gas Futures Chart

Crude Oil Watch
West Texas Cushing traded up $1.47 to $73.24 per bbl today at 9:03 AM.
NYMEX Crude front month future is up $1.64 to $73.41 per bbl at 10:28 AM today.
 OPEC Basket Data
 
Is the Bakken Formation the end of oil imports for the US?
This analysis by Leigh Price would seem to support that argument if the geological analysis proves to be correct. Review the document titled, "Origins and Characteristics of the Basin-Centered Continuous Reservoir Unconventional Oil-Resource Base of the Bakken Source System, Williston Basin" on the EERC site by clicking here. It is surprising how few people are aware of the potential of this well studied structure.

Electricity Watch-
Northeastern electricity prices are averaging to about $38.00 per MWH this morning: last year it was just a shade above $60.00 per MWH.
For more information view the Day Ahead Electric pricing data charts from the PMC database, updated every Monday.
 
Weather Trends- Summer Chill Ahead
The Northeastern US will be unseasonably cooler over the next three weeks.
NOAA Forecast for Next Week
8-14 Day forecast
NOAA Forecast- 30-Days

Written and Researched by Martin Linskey; Energy Charts developed by Charles Myers.

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.