Summer Heat sets U.S. Natural Gas Futures on Course for the Largest Gain in Eight Years

While PACE is focused primarily on reducing the amount of energy consumed, PACE Houston also asks its clients to consider the historic low energy prices that we have been experiencing as an opportunity to fix the cost per kWh of energy consumed. While gas does not impact electricity rates on a 1:1 basis, it does have an impact. 

"Gas has surged 18 percent this year, rebounding from a 17-year low. Drillers, burned by earlier declines, are refilling storage at half last year’s pace as extreme heat boosts the use of air conditioners, increasing gas demand from power plants. By November, supplies will probably drop below the five-year average, the benchmark for normal levels, for the first time in 13 months, based on storage rates."

"Just four months ago, gas plunged after the warmest winter on record left the market with a glut large enough to last through the year. Instead, hot weather and a slowdown in shale production are eating into the surplus, signaling an era of higher prices as gas exports rise and electricity generation cuts into excess supply."

"“We’re moving toward a potentially serious deficit in the supply-demand balance for this coming winter,” Andrew Weissman, chief executive officer of EBW Analytics Group, a Washington-based energy analysis company, said by phone."

See MSN full article for more information