Specific factors contributing to lower average spot
natural gas prices during the first half of 2012 include:
Historically, the Northeast has been the poster child for high
natural gas prices during the winter season, due to insufficient infrastructure needed to bring natural gas to market.
Not exact matches
Not surprisingly, energy
prices, particularly for
natural gas, have gained ground
during this stretch.
During 2008 the company benefited from high spot
prices for oil and
natural gas as well as a contraction in rig count within the GOM.
Therefore, we estimate that Seahawk should generate $ 15 - 30m in FCF
during 2009 and $ 125 - 135m at less depressed
natural gas prices.
Increased demand from the electric sector, with low -
priced natural gas burn totaling about 2,600 Bcf from April through June of 2012, up 27 % from just over 2,000 Bcf burned
during the same period in 2011.
However, mild weather
during the winter of 2011/2012 combined with falling
natural gas prices dampened demand for coal - fired electricity.
While there are significant differences in projected
natural gas prices across baselines, with persistently lower prices in the High Oil and Gas Resource case, the Clean Power plan itself does not significantly move natural gas prices with the exception of an initial impact expected during the first 2 - 3 years after the start of implementati
gas prices across baselines, with persistently lower
prices in the High Oil and
Gas Resource case, the Clean Power plan itself does not significantly move natural gas prices with the exception of an initial impact expected during the first 2 - 3 years after the start of implementati
Gas Resource case, the Clean Power plan itself does not significantly move
natural gas prices with the exception of an initial impact expected during the first 2 - 3 years after the start of implementati
gas prices with the exception of an initial impact expected
during the first 2 - 3 years after the start of implementation.
The combination of one of the warmest winters (November - March) in decades and low spot
natural gas prices contributed to low wholesale electric
prices at major market locations
during the winter of 2011 - 2012 (see chart below).
During 2012, particularly in the spring and early summer, low
natural gas prices led to competition between
natural gas - and coal - fired electric power generators.
Low
natural gas prices make
gas - fired generation economically attractive
during periods of low demand when operators in many parts of the country have more flexibility to choose between coal - and
natural gas - fired units based on their dispatch cost.
As higher demand boosts
prices, some of the
natural -
gas production shut - in
during the recent slump will be brought back online, bolstering supply and limiting the
price increases.
Natural gas prices began to spike ever higher during 2005, and the Henry Hub Gulf Coast Natural Gas Spot Price crossed $ 15 per million British thermal units (MMBTU) that Decemb
gas prices began to spike ever higher
during 2005, and the Henry Hub Gulf Coast
Natural Gas Spot Price crossed $ 15 per million British thermal units (MMBTU) that Decemb
Gas Spot
Price crossed $ 15 per million British thermal units (MMBTU) that December.
Natural gas can not be stored in significant quantities on site, and
gas supplies are subject to volatile
price swings
during periods of high demand.
It's already causing hunger and even starvation in poorer countries (the ethanol program driving up grain
prices) and deaths from freezing in Europe when people can't afford $ 100 / MMBtu ($ 10 / therm)
natural gas and can't burn coal
during some of the coldest winters on record.
This was below the
price of wholesale power from the grid
during that year, and competitive with electricity from
natural gas.
During the 1990s and 2000s, the generation costs for plants fueled by
natural gas fell dramatically as a result of lower
natural gas fuel
prices and the increased use of combined cycle technology for power generation.
Over the past few years, the
price of
natural gas has been below $ 3.00, actually below $ 2.50 per million BTU
during 2016, which has put considerable pressure on both coal - fired and nuclear power pants to compete... especially with the effect of preferential dispatching used by RTO / ISO organizations.
Since May 2012, a combination of higher
prices for
natural gas and increased demand for electricity
during the summer months led electric systems across much of the country to increase their use of coal - fired units.
Instead the biting cold of January propelled
natural gas prices to an all - time high, and heavy snows paralyzed the transportation infrastructure in all the major eastern cities
during February 2003.
And this is especially important
during the winter, when the demand for
natural gas for home heating spikes in some parts of the country, leading to higher
prices and less
natural gas available for electricity generation (since home heating takes priority over electricity generation in terms of
natural gas pipeline delivery contracts).