Energy Market Update

May 2020

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients.  The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics.

Market Overview:

A slow moving pocket of below average temperatures encompassed the eastern half of the U.S. over the past couple of weeks. This has added spring heating demand and pushed electric and gas prices up slightly.  Average temperatures are expected to resume by mid-May.  Natural gas storage projections made in Mid-April of over 4,000 Bcf (Billion Cubic Feet) by this coming winter have now been reassessed down to about 3,800 Bcf. 

Reduced consumption due to the COVID-19 pandemic will provide price stability for now, but as states begin to reopen, this may change.  We will be watching for the potential of weak natural gas storage builds as we move into the cooling season.  Because gas is the predominate fuel to generate electricity, the impact on electric market prices will be much more pronounced during an extended heat wave.

The natural gas futures market average strip prices (below) show the near years are more sensitive to current conditions.  This also shows us that market participants expect natural gas to remain a bargain in ’22 & ’23.

This next chart shows the 12 month average wholesale electric pricing on PJM Western Hub.  The correlation of natural gas to electric prices is clearly demonstrated here.

 April’s gas index price settled on April  28th at $1.794/Dth, up 15.1¢ from last month.

Natural Gas Storage Update: 

The storage report for week ending April 1st shows a injection of 109 Billion Cubic Feet (Bcf), above average for this time of year.  This puts levels at 20.5% above the 5-year average by 395 Bcf, and 796 Bcf above last year at this time.  Current percentage of total capacity is at 53%. 

Energy news:

Daily electricity demand in New York falls about 13% after COVID-19 mitigation efforts

Recent business shutdowns and changes to normal routines related to mitigation efforts for the 2019 novel coronavirus disease (COVID-19) have caused daily, weekday electricity demand in New York state to decrease by 11%–14% in March and April compared with expected demand, after accounting for seasonal temperature changes. Electricity demand changes in New York state and in New York City, in particular, have been more pronounced than in other parts of the country, which may partly be caused by regional differences in how much electricity each end-use sector consumes and the varying effects of COVID-19 mitigation efforts on the sectors.


Click this link for the Full article on the EIA.gov website

Market Opportunity:

The market is continuing to be a very good buying opportunity for both gas and electric is excellent.   The EIA is projecting that energy prices will increase later in the year and remain higher in ‘21, so taking action early is suggested.  Hedging out 24 to 36 month is a good decision at this time.

The market opportunity is a ranking of how we perceive timing of contract  purchases for natural gas or electric.

Information provided by the Energy Division of Edge Insights, Inc.

Note:  Reducing your kW demand is good for the planet and good for your bottom line.  Just knowing how much you consume and what your equipment uses, is an important first step.  For example; reducing your kW load on peak demand days will not only help the electric generators, but can save money on you electric bills. 

Benchmarking electric and gas consumption will let you quantify your energy efficiency efforts.  Talk to your Edge Insights account representative to learn how you can start a ‘Green Initiative’ program for your business.

April 2020

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients.  The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics.

Market Overview:

As we approach the end of heating season, the reduction of natural gas demand follows, and as usual we see stable low natural gas prices. 

The real news is the economic slowdown from the Covid-19 pandemic and the extreme effect on the oil and LNG (Liquefied Natural Gas) markets.  We have seen huge declines in commercial energy usage and significant declines in gasoline consumption.   In addition to the Pandemic, we are in the middle of an oil price war with Saudi Arabia and Russia flooding the market  The result is sharply reduced prices and refinery production cutbacks.  It’s a bit ironic… we now have low gasoline prices at the pump, and travel restrictions.  Product storage is reaching capacity in many places in the U.S.

For LNG; we are now seeing the going rate at $1.33/MMBtu which is 65% below last year.  Global competition has pressured prices down over the past year.  LNG exports have continued to decrease week over week.

The chart below shows the natural gas market.  As prices remain low on the 12 month strip price, future years are moving up.  This indicates that investors may be looking out past the pandemic for market returns.

This next chart shows the 12 month average wholesale electric pricing on PJM Western Hub.  The correlation of natural gas to electric prices is clearly demonstrated here.

 April’s gas index price settled on March 27th at $1.643/Dth, down 18.6¢ from last month.

Natural Gas Storage Update: 

The storage report for week ending Mar 27th shows a withdrawal of 19 Billion Cubic Feet (Bcf), average for this time of year.  This puts levels at 17.2% above the 5-year average by 292 Bcf, and now 863 Bcf above last year at this time.  Current percentage of total capacity is at 45.4%. 

Energy news:

From the chart above, the EIA’s Short Term Energy Outlook shows a forecast for WTI Crude Oil prices to recover throughout 2020 and 2021.

Market Opportunity:


The market buying opportunity for both gas and electric is excellent.  The NYMEX market is still near 2016’s low, and a great time to consider long terms contracts for both gas and electric.

The market opportunity is a ranking of how we perceive timing of contract  purchases for natural gas or electric.

Information provided by the Energy Division of Edge Insights, Inc.

Note:  Reducing your kW demand is good for the planet and good for your bottom line.  Just knowing how much you consume and what your equipment uses, is an important first step.  For example; reducing your kW load on peak demand days will not only help the electric generators, but can save money on you electric bills. 

Benchmarking electric and gas consumption will let you quantify your energy efficiency efforts.  Talk to your Edge Insights account representative to learn how you can start a ‘Green Initiative’ program for your business.

March 2020

Edge Insights energy experts are constantly monitoring energy market conditions in order to help ensure the best possible pricing and contract terms for our clients.  The following report is a snap shot of current conditions intended to help our clients stay informed of market dynamics.

Market Overview:

The majority of the country has experienced an above normal temperature winter.  This has had a profound effect on gas and electric prices, and forecasts are for more of the same.  Historically, low prices are not sustainable, and the potential for the market to react quickly to demand changes can occur.  Also, with low gas prices, there is a higher use of gas versus coal for electric generation.  

Liquefied Natural Gas (LNG) exports were on the rise for the past few years, but have recently flattened due to competition from other countries.  Asian countries are experiencing reduced demand due to impacts on their economy from the Coronavirus.  LNG prices are now 52% below last year, following natural gas prices, and producers are struggling to cover costs.  Drilling activity in gas producing regions show a decline in the rig count from 144 in April 2019 to 96 this past January.

For now, high gas storage levels and a warm spring will suppress market prices and expose good retail buying opportunities for long term energy contracts.

The chart below shows the natural gas market.  The influence of the temperatures and above average gas storage levels are apparent.  Note how 2023 – 2025 are starting to show the retail sentiment for extended terms.

This chart shows the 12 month average wholesale electric pricing on PJM Western Hub.

 February’s gas index price settled on February 26th at $1.829/Dth, down 4.8¢ from last month.

Natural Gas Storage Update: 

The storage report for week ending Feb 28th shows a withdrawal of 109 Billion Cubic Feet (Bcf), average for this time of year.  This puts levels at 9.2% above the 5-year average by 176 Bcf, and now 680 Bcf above last year at this time.  Current percentage of total capacity is at 47.8%. 

Energy news:

The EIA posted the following map showing the planned utility scale generation slated for completion in 2020.  Analysts are forecasting that renewables would be the primary source of energy to offset new demands through 2050. 

Market Opportunity:

The market buying opportunity for both gas and electric is excellent.  The NYMEX market is near 2016’s low, and a great time to consider long terms contracts for both gas and electric.

The market opportunity is a ranking of how we perceive timing of contract  purchases for natural gas or electric.

Information provided by the Energy Division of Edge Insights, Inc.

Note:  Reducing your kW demand is good for the planet and good for your bottom line.  Just knowing how much you consume and what your equipment uses, is an important first step.  For example; reducing your kW load on peak demand days will not only help the electric generators, but can save money on you electric bills. 

Benchmarking electric and gas consumption will let you quantify your energy efficiency efforts.  Talk to your Edge Insights account representative to learn how you can start a ‘Green Initiative’ program for your business.

Information provided by the Energy Division of Edge Insights, Inc.

Note:  Reducing your kW demand is good for the planet and good for your bottom line.  Just knowing how much you consume and what your equipment uses, is an important first step.  For example; reducing your kW load on peak demand days will not only help the electric generators, but can save money on you electric bills. 

Benchmarking electric and gas consumption will let you quantify your energy efficiency efforts.  Talk to your Edge Insights account representative to learn how you can start a ‘Green Initiative’ program for your business.

Why bring in a company like us to audit your expenses?

You may be spending in places today where you could be saving tomorrow. And we’ve got the numbers to back up our promises.

Founded in
1991

2,000+
organizations served

2,500+
telecom circuits managed

3,500+
electric meters managed

1,500+
natural gas meters managed

500+
waste accounts managed

200+
combined years of industry experience

The average client saves
$41,000
throughout our partnership

Results-oriented: We produce cash-flow-positive results for customers and are committed to ensuring you receive accurate billing and long-term cost reduction.

Responsive: With a contingency-based model, we are your true partner that unburdens you from billing issues in a budget-positive way.

Expert: The average Edge Insights employee has been with the company well over 10 years, which means customers benefit from decades of experience in saving organizations money.

Genuine: We maintain a completely independent, agnostic approach to recommending suppliers, so you know you are getting the right solution to fit your needs.

I'd like to learn more

Are you ready for cost-free, risk-free savings?

  • Should be Empty: