Natural Gas

Working gas in storage was 4,000 Bcf as of Friday, November 13, 2015, according to EIA estimates. This represents a net increase of 15 Bcf from the previous week. Stocks were 404 Bcf higher than last year at this time and 207 Bcf above the five-year average of 3,793 Bcf. At 4,000 Bcf, total working gas is above the five-year historical range.

Survey predicts storage to hit historic 4 Tcf level

•  EIA storage estimate gets an overhaul

•  4-plus Tcf becomes the new normal

Actual 15 Bcf.

The U.S. Energy Information Administration on Thursday is expected to report a natural gas storage injection between 17 and 21 Bcf for the week that ended November 13, according to a Platts’ survey of analysts. If the injection comes in as expected, storage levels will crack the 4-Tcf level, an all-time record. An injection within expectations would be more than the 9-Bcf withdrawal reported at this time last year and more than the 12-Bcf five-year average withdrawal, according to EIA data.  Last week, the EIA reported a 54-Bcf injection that increased inventories to 3.985 Tcf, which was 379 Bcf, or 10%, more than the year-ago inventory of 3.606 Tcf, and 180 Bcf, or 4.7%, more than the five-year average of 3.805 Tcf.

A utility is granted a monopoly to conduct its business for the benefit of the public. Without competition (and who would want more poles on the street or the road ripped more for more pipes), state regulators decide if the utility is spending money in the public interest; that is for improving the distribution of energy.

Peoples Gas estimated repairs to maintain its pipes at $4.5 Billion in just a year that number is now $8 BILLION.

This after a consultant was hired that reviewed Peoples work practice in the repairs and found them to be in disarray.

Recall, a utility monopoly earns profit by spending money; that is they earn a rate of return for borrowing money and investing it to perform its job. The regulators are charged with making sure we, the public, get its money worth.

In Illinois, the regulators overseeing utilities is called the Illinois Commerce Commission (ICC). Without diligence and competency by the ICC, Peoples Gas can waste money and still earn a profit without the residents receiving any benefit.

If there is no competition for service, we need a strong watchdog to ensure we get value for our investment.

Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed Savings^TM, ManagedPrice^TM, ManagedGreen^TM and Index, Fixed pricing.

Additional information: www.realgyenergyservices.com

Supporting Article:

http://www.chicagobusiness.com/article/20151028/BLOGS10/151029858/illinois-utility-regulator-needs-to-punish-integrys-if-it-withheld

NIPSCO sent out a letter to residents offer a fixed price . Realgy sent out an email, followed by a phone call offering a fixed price.

What’s the difference:

                                            BIG Difference: $0.0131 / therm

NIPSCo’s offer covers the summer months when natural gas pricing tends to drop.
Realgy’s PriceWatch^TM covers only the winter months, when gas pricing is the highest and most likely to go higher.

Over the last 12 months Realgy has been 27.74% below NIPSCo’s price; this amounted to $3,784 in savings for our average customer.

So which fixed price is protecting you?

Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed Savings^TM, ManagedPrice^TM, ManagedGreen^TM and Index, Fixed pricing.

Additional information: www.realgyenergyservices.com

Supporting Article:
Realgy’s PriceWatch^TM: http://realgyenergyservices.com/request-for-service/pricewatchtm/
NIPSCO Price Protection Service: https://www.nipsco.com/our-services/price-protection-services

NG Futures Hit Fresh 14-yr Lows.

As Realgy is preparing to issue our annual PriceWatch^TM Service, natural gas pricing is hitting its lows.

Look for the coming winter fixed price offer soon.

Working gas in storage was 3,733 Bcf as of Friday, October 9, 2015, according to EIA estimates. This represents a net increase of 100 Bcf from the previous week. Stocks were 447 Bcf higher than last year at this time and 168 Bcf above the 5-year average of 3,565 Bcf.

EIA estimates 91-95 Bcf

vs

Actual inject was 100 Bcf

An injection within expectations would be less than the 96-Bcf build reported at this time in 2014 but more than the 87-Bcf five-year average increase, according to EIA data. The wider range of analysts’ expectations for this week was for an injection of 77 Bcf to 104 Bcf. Last week, the EIA reported a 95-Bcf injection that increased inventories to 3.633 Tcf, which was 443 Bcf, or 13.9%, more than the year-ago inventory of 3.19 Tcf, and 155 Bcf, or 4.5%, more than the five-year average of 3.48 Tcf. “Demand picked up slightly, mostly due to increased heating load as temperatures are starting to decline on seasonal trends,” said Bentek Energy, a unit of Platts. “The increased heating demand was met with lower power burn demand. However, power-burn demand trended higher as the week progressed after starting … the week at relatively weak levels, and set a new single-day high for the month of October late in the storage week.” Greater demand decreased injection activity 24% week over week in the East Region, Bentek said. “This was partially offset by stronger injection activity within Bentek’s sample of facilities in both the Producing Region and the West,” Bentek said. FirstEnergy Capital analyst Martin King said that despite above-average temperatures during the reporting week, temperatures were cooler in the East, causing some “noticeable overnight heating loads.”

If you look at the chart below, you will see a lot of volatility in the short run and continuing all the to March and April 2016.  This is more or less due to uncertainty in the market place where financial basis markets were mixed with Northeast prompt-month basis prices moving higher, while months further along the curve mostly fell. The NYMEX October natural gas futures contract fell 5.9 cents to settle at $2.651/MMBtu on expectations of a bearish weekly natural gas storage report.

Working gas in storage was 3,261 Bcf as of Friday, September 4, 2015, according to EIA estimates. This represents a net increase of 68 Bcf from the previous week. Stocks were 473 Bcf higher than last year at this time and 127 Bcf above the 5-year average of 3,134 Bcf.

EIA estimated 72-76 Bcf

vs

Actual Injection 68 Bcf

A consensus of analysts surveyed by Platts expects the US Energy Information Administration on Thursday will estimate a natural gas storage injection of between 72 Bcf and 76 Bcf for the reporting week that ended September 4. A build within expectations would be less than the 90 Bcf injection reported at this time in 2014 but more than the 63 Bcf five-year average increase, according to EIA data. The wider range of analysts’ expectations for this week was for an injection of 69 Bcf to 81 Bcf. “Injection activity fell compared to the previous week within the East and Producing regions, as demand picked up on higher temperatures,” said Platts unit Bentek Energy in its Weekly Storage Report. Power demand rose by more than 1.6 Bcf/d compared with the previous week, Bentek said, mostly in the East Region. Most storage facilities reported smaller injections across the Midwest and Northeast.