EMC Energy Initiative News
With the rise of natural gas prices due to the extended colder weather, the current peak hedge prices being offered to the market are higher than our forecasted prices and so currently do not offer any value to EMC members.
As we move into the warmer spring weather we are forecasting a reduction in the peak hedge prices. Now is the time to set somewhat aggressive target prices for the summer months (June/July/August/September) as we expect the current prices to drop alongside natural gas prices.
As well, it is a good time to look at setting target prices for Calendar 2014 and Calendar 2015 as the current market prices for a peak hedge during those terms are less that the current peak hedge market price for the…
Natural gas and electricity hedge prices remain higher than last year's levels due to the colder winter weather.
While more robust than the average levels over the last 10 years, natural gas storage levels, at the end of March (end of the withdrawal season), are significantly behind levels of one year ago. This is a result of ongoing colder weather and higher withdrawals during the 2nd half of winter.
Logged-in Energy Buying Group members can download full details on the current Natural Gas and Electricity market conditions.
Given normal weather conditions, we expect prices to soften in the short…
We may see some purchasing opportunities for both natural gas and electricity prior to prices rising over the summer months.
Through the winter months we have experienced higher natural gas extractions from storage than last year. However, the storage levels at the end of winter (March 31) are forecasted to be at the second highest levels historically, which may cause the market to soften over the next couple of months.
This should present some purchasing opportunities for both natural gas and electricity prior to prices rising over the summer months.
To further explore the current opportunities through the EMC…
If you want to explore the opportunities available through the EMC Energy Group please contact your FSA to set up a one on one meeting.
Both natural gas and electricity prices have been impacted during January, due to the colder weather. Prices for both commodities are currently impacted by the weather conditions. If we experience on-going cold weather; we will see higher prices for both natural gas and electricity due to the reduction in the current natural gas storage levels. However, if we experience milder weather; we could see opportunities for lower natural gas and electricity fixed prices for future terms.
Logged-in…
In the five years since we launched EMC’s Energy Group, our members have represented one of the largest single energy buys for manufacturers in Canada and a model for energy management that is unique to industry. We are pleased to report the energy group initiative has continued to grow and serve members every year.
It has been our privilege to help manufacturers tackle one of their greatest expenses again this year... and what a year it was!
The energy market can be a fickle thing. From oil prices that when last seen (a decade or more ago) should reflect a much lower 'price at the pump' for drivers than we see today, to price speculation that sends the market reeling. How we view energy costs can be as much a cultural thing as it is economics.
Remember when petroleum prices exceeded $1.50 a litre in…
Due to higher natural gas consumption for Power generation across North America, a decrease in the number of active natural gas wells and reduced injections into storage during September and October the market price for Natural Gas has risen over the October and November time frame.
Winter weather will be the determining factor in natural gas and electricity pricing moving forward. A mild winter will push prices lower, while a normal or cold winter will cause prices to rise somewhat as more…
EMC Energy Group - Monthly Energy Market Update for Members
Bruce Power just announced that one of the refurbished nuclear units generated power for the first time in 15 years as of Sept. 20, 2012. So we should see lower HOEP numbers in the last quarter of the year.
Logged-in Energy Buying Group members can download full details on the current Natural Gas and Electricity market conditions.
With the consistantly hot summer weather behind us we are forecasting that Natural Gas prices will drop over the next 6 to10 weeks prior to the start of the winter season.
Our experts are predicting that this drop in price represents the bottom of the market as prices are forecasted to increase over 2013 and 2014 as a result of higher consumption and reduced supply due to the reduction of active wells.
A price increase in Natural Gas will also have an impact on the Peak electricity costs in 2013 and 2014.Logged-in Energy Buying Group members can download more details here.
Natural gas prices are forecasted to decrease over the next 10 weeks due to current storage excess to below $2.75/GJ, but the price softening will be short-lived.
| Click here to see a larger image. |
Due to a decrease in the number of active natural gas drills, higher consumption for power generation and a return to normal winter weather we are forecasting natural gas prices will be in the $2.80/GJ to $3.75/GJ range averaging approx. $3.30/GJ in 2013. Click the image to see a larger image.
This represents an increase in your natural gas costs of approx. 30% over the next year.
If you have not put target prices in place for the next gas year now…
EMC Energy Group - Monthly Energy Market Update for Members
A number of reliable sources have forecasted that natural gas prices could increase from 25% to 50% over the next year due to expected demand increases for natural gas (Demand from the power sector continues to be very strong). This would return storage to more normal levels, which will lead to higher prices than current for 2013 and beyond.
If you are interested in learning more about the EMC Energy Group and how you can control your natural gas and electricity costs please contact your…
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